Diseconomies of scale exist for all of the following reasons except:

Do you think sellers in a perfectly competitive market can price their goods differently? Explain your answer

What will be an ideal response?

Suppose over the last year that the price of iron ore increased from $1,200 a ton to $1,275 a ton. Over the same time a measure of the overall price level increased from 150 to 156 . The price of iron ore increased by

a. less than inflation, so it became less scarce. b. less than inflation, so it became more scarce. c. more than inflation, so it became more scarce. d. more than inflation, so it became less scarce.