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

Firms’ costs, revenue and objectives — practice question

An industry is facing diseconomies of scale. What is happening to long run average cost and total cost?

  • Along run average cost decreasing; total cost decreasing
  • Blong run average cost decreasing; total cost increasing
  • Clong run average cost increasing; total cost decreasing
  • Dlong run average cost increasing; total cost increasing

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