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.

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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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
Transcribed Image Text: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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