106) The short-run average total cost curve eventually begins to increase at an increasing rate because of A) diseconomies of scale phenomena. B) a constraint that does not allow the firm to change its production technology. C) diminishing returns phenomena. D) increasing returns to scale to capital.

106) The short-run average total cost curve eventually begins to increase at an increasing rate because of A) diseconomies of scale phenomena. B) a constraint that does not allow the firm to change its production technology. C) diminishing returns phenomena. D) increasing returns to scale to capital.

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter7: Proudction Costs

Section: Chapter Questions

Problem 15SQ

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Concept explainers

Short-Run Costs and Long-Run Costs

Cost of short-run and the long-run is an economic term that describes the cost involved in the production of goods in a firm in the short as well as long period.

Question

Diff: 2
Topic: Costs.in the Short Run
Skill: Analytic
ATC
106) The short-run average total cost curve eventually begins to increase at an increasing rate
because of
A) diseconomies of scale phenomena.
B) a constraint that does not allow the firm to change its production technology.
C) diminishing returns phenomena.
D) increasing returns to scale to capital.
Answer: C
Diff: 1
Topic: Costs in the Short Run
Skill: Fact

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