If an industry is characterized by substantial diseconomies of scale,

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) a decrease in marginal costs.
B) an increase in the marginal product of labor.
C) a decrease in the total fixed costs of production.
D) an increase in the average total costs of production.

 

ANSWER

D

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