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jasmin mughal
on Nov 04, 2024

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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.
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Paula EucedaNov 05, 2024
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