Asked by
jasmin mughal
on Nov 04, 2024Verified
When long-run average costs increase as a result of industry growth, there are
A) internal economies.
B) internal diseconomies.
C) external economies.
D) external diseconomies.
Internal Diseconomies
Increased per unit costs that occur when a firm or industry grows beyond a certain size, leading to inefficiencies.
External Diseconomies
Negative effects experienced by third parties or the general public due to the activities of a business or industry, not reflected in market costs.
- Analyze the effects of both external and internal economies and diseconomies of scale on long-term average expenses.
Verified Answer
PE
Learning Objectives
- Analyze the effects of both external and internal economies and diseconomies of scale on long-term average expenses.