Which of the following statements defines a diseconomy of scale?


Which of the following statements defines a diseconomy of scale?
A . A reduction in the unit average cost caused by increasing the scale of production in the long run.
B . An increase in the unit average cost caused by increasing the scale of production in the long run
C . An increase in the unit average cost caused by decreasing the scale of production in the long run.
D . A reduction in the unit average cost caused by decreasing the scale of production in the long run.

Answer: B

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