Multiple Choice
If we know that a firm is experiencing diseconomies of scale,which of the following statements is true?
A) The firm is operating on the upward-sloping segment of its LRAC curve.
B) The firm is experiencing increasing returns to scale.
C) Both pecuniary and technical economies of scale must be present.
D) If all inputs were increased by 10% then output would rise by more than 10%.
E) The firm is also experiencing diminishing marginal returns.
Correct Answer:

Verified
Correct Answer:
Verified
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