When a firm is experiencing diseconomies of scale, long-run: a. average total cost is minimized, ...
Question:
When a firm is experiencing diseconomies of scale, long-run:
a. average total cost is minimized,
b. average total cost is greater than the long-run marginal cost,
c. average total cost is less than the long-run marginal cost,
d. marginal cost is minimized.
Marginal Cost:
The concept of marginal cost is often used in economics to help firms make production-related decisions. It reflects the additional economic outlay required by the firm in order to produce one extra unit of output.
Answer and Explanation: 1
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View this answerThe correct answer is c. average total cost is less than the long-run marginal cost.
This is because the company is in a position where, if it were...
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Marginal Cost: Definition, Equation & Formula
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Chapter 3 / Lesson 12
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What is marginal cost? Learn how to calculate marginal cost with the marginal cost formula. See the definition, behavior, and marginal cost examples.
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