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Sedbober [7]
2 years ago
13

Which of the following statements describes the most likely reason why

Business
1 answer:
Kryger [21]2 years ago
8 0

Answer:

D. they can save money this way.

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The United Kingdom started regulating the size of grocery stores in the early​ 1990s, and​ today, the average size of a typical
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C. The​ long-run average cost of production for U.K. grocery stores is lower if there are diseconomics of scale.

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The diseconomy of scale is called the effect that occurs in the costs of a given production. These effects generate increasing costs for the company for each unit of product that is manufactured. Specifically and technically, a diseconomy of scale occurs when a percentage increase in production is less than the percentage increase in inputs.

Since the size of the grocery stores decreases, the average costs decreases. So, The​ long-run average cost of production is lower when there are diseconomics of scale.

Hope this helps.

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