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Economics · May / June 2019 · Paper 12 · Question 13

2281Firms

What is the definition of diseconomies of scale?

  1. Athe decrease in average revenue as output increases
  2. Bthe decrease in fixed cost as output increases
  3. Cthe increase in average total costs as output increases
  4. Dthe increase in total costs as output increases

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Correct answer: C. the increase in average total costs as output increases

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