# 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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Chapter 3 / Lesson 12What 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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