Lesson 6

Question 1

diseconomies of scale

Answer 1

occur for a firm when an increase in the scale of production leads to production at higher long-run average costs

Question 2

internal diseconomies of scale

Answer 2

diseconomies of scale that arise from the expansion of a firm

Question 3

external diseconomies of scale

Answer 3

diseconomies of scale that arise from the expansion of the industry in which a firm is operating