Economics 0455 · IGCSE · Firms’ costs, revenue and objectives

Firms’ costs, revenue and objectives — practice question

In large-scale organisations, coordination difficulties between departments may arise and this can create diseconomies of scale over the long-run. What shows that diseconomies of scale have begun?

  • Aaverage fixed costs begin to decrease
  • Baverage variable costs begin to decrease
  • Crate of growth of output begins to decrease
  • Dtotal revenue begins to decrease

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