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

 

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

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Question added by Shahbaz Hayder , Group Head of Finance , Sharif Group of Companies
Date Posted: 2015/07/04
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Shazia Anees
by Shazia Anees , Assistant Manager Finance , Arham Trading Company

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

Shahbaz Hayder
by Shahbaz Hayder , Group Head of Finance , Sharif Group of Companies

Yes, Option B is the right answer.

Zehab Osman
by Zehab Osman , Accountant , Aldar Consultancy Co.

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

lakshminarasimham mallareddi
by lakshminarasimham mallareddi , Manager Finance & Accounts , M/s. Vandana Global Limited, Raipur, Chhattisgarh

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.

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