A manufacturing firm operates a single plant that is of optimum size. It then constructs a second plant that is identical to the first. After this, the firm discovers that its long-run average cost has increased. What might explain the alteration in its long-run average cost?
- Adiminishing returns
- Bexternal diseconomies of scale
- Cmanagerial diseconomies of scale
- Dtechnical diseconomies of scale