If average total costs increase when the output level increases, then there are diseconomies of scope. O there are economies of scope. O there are no economies of scale. O there are diseconomies of scale.

If average total costs increase when the output level increases, then there are diseconomies of scope. O there are economies of scope. O there are no economies of scale. O there are diseconomies of scale.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter7: Production, Costs, And Industry Structure

Section: Chapter Questions

Problem 28RQ: What shape of a long-run average cost curve illustrates economies of scale, constant returns to...

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Concept explainers

Cost of Production

The entire idea of the cost of production or production cost is applied corresponding, or we can say that it is related to monetary cost. Money cost refers to any money expenditure which the firm or supplier, or producer undertakes in purchasing or hiring factor of production or factor services.

Question

If average total costs increase when the output level increases, then
O there are diseconomies of scope.
O there are economies of scope.
O there are no economies of scale.
O there are diseconomies of scale.

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