passwella.
Menu

WAEC Economics 2024 Question 18

Question 18

Theory of Production

Which of the following best explains diseconomies of scale? Increase in output causes the

  1. A.average cost to rise.
  2. B.marginal revenue to fall.
  3. C.marginal cost to fall.
  4. D.firm to be destabilized.
Show the answer and explanation

Answer: A (average cost to rise.)

Explanation

Diseconomies of scale mean average cost rises as the firm grows.