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Which of the following best explains diseconomies of scale? Increase in output causes the

Economics
WAEC 2024

Which of the following best explains diseconomies of scale? Increase in output causes the

  • A. average cost to rise.
  • B. marginal revenue to fall.
  • C. marginal cost to fall.
  • D. firm to be de- stabilized.
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Correct Answer: Option A
Explanation

A: When average cost increase as out- put is increased, then diseconomies of scale has set in.

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Post-UTME Past Questions - Original materials are available here - Download PDF for your school of choice + 1 year SMS alerts
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Post-UTME Past Questions - Original materials are available here - Download PDF for your school of choice + 1 year SMS alerts
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