If producing more output increases average cost then A there

If producing more output increases average? cost, then

A. there are economies of scope.

B. there are no economies of scale.

C. there are diseconomies of scope.

D. there are diseconomies of scale.

Solution

Ans:

Option D

there are diseconomies of scale

Diseconomies of scale are the cost disadvantages to firms caused by increase in average cost when more output is produced.Hence when long run average cost increases due to increase in output, then there are diseconomies of scale.