Related to the Economics in Practice on Page 197

Multiple Choice

Related to the Economics in Practice on page 197. Which of the following represents a situation in which a school is experiencing diseconomies of scale?

A) Student enrollment decreases by 30 percent and average total cost increases by 50 percent.
B) Student enrollment decreases by 50 percent and average total cost decreases by 20 percent.
C) Student enrollment decreases by 25 percent and average total cost increases by 10 percent.
D) Student enrollment decreases by 30 percent and average total cost does not change.