Copyright

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

Become a Study.com member to unlock this answer!

View this answer

The 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...

See full answer below.


Learn more about this topic:

Loading...
Marginal Cost: Definition, Equation & Formula

from

Chapter 3 / Lesson 12
252K

What is marginal cost? Learn how to calculate marginal cost with the marginal cost formula. See the definition, behavior, and marginal cost examples.


Related to this Question

Explore our homework questions and answers library