Question

The positively sloped (i.e. rising) part of the long run average total cost curve is due to which of the following?

• A. Diseconomies of scale.
• B. Increasing returns.
• C. The firm being able to take advantage of large-scale production techniques as it expands its output.
• D. The increase in productivity that results from specialization.

Answer 1

The correct option is A

Diseconomies of scale.

The positively sloped (i.e. rising) part of the long run average total cost curve is due to diseconomies of scale