Characterized by substantial diseconomies of scale

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Reference no: EM13987296

If an industry is characterized by substantial diseconomies of scale, as a particular firm in the industry expands its production capacity we will observe:

A decrease in marginal costs.

An increase in the marginal product of labor.

A decrease in the total fixed costs of production.

An increase in the average total costs of production.

Reference no: EM13987296

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