If a firm’s long-run average cost of production increases by 15 percent as a result of an 8 percent increase in production?

Question

the firm is most likely experiencing: A. economies of scale. B. diseconomies of scale. C. constant returns to scale.

Shazia Anees · Answer

B. diseconomies of scale.=======

Shahbaz Hayder · Answer

Yes, Option B is the right answer.

Zehab Osman · Answer

B-------------------------------------------------

lakshminarasimham mallareddi · Answer

Correct Answer is A. economies of scale. If a firm's long-run average cost of production increases by15% as a result of an8% increase in production.