Question

An increase in long-run average costs resulting from decreases in output is attributed to the law of diminishing marginal product. attributed to constant returns to scale. attributed to diseconomies to scale. attributed to economies of scale.

Answer 1

Answer:

attributed to diseconomies to scale

Explanation:

It is true that an increase in long-run average costs resulting from decreases in output is attributed to diseconomies to scale

Diseconomies of scale refers to a situation where as output increases, average costs increase also.

Diseconomies of scale happens when a company or business grows so large that the costs per unit (average costs) increases. Hence it occurs when the expansion of output results in an increasing average unit costs