What are economies of scale? What are diseconomies of scale?
What will be an ideal response?
Economies of scale occur when a firm's long-run average costs fall as it increases output. Diseconomies of scale occur when a firm's long-run average costs rise as the firm increases output.
You might also like to view...
Stock prices are
A) based less on the current profitability of firms than on their expected future profitability. B) based equally on the current profitability of firms and on their expected future profitability. C) not based on the current profitability of firms or on their expected future profitability. D) based more on the current profitability of firms than on their expected future profitability.
Which of the following is an example of a market?
a. a gas station b. a garage sale c. a barber shop d. All of the above are examples of markets.