- CFA Exams
- CFA Level I Exam
- Topic 2. Economics
- Learning Module 1. The Firm and Market Structures
- Subject 5. Understanding Economies and Diseconomies of Scale
CFA Practice Question
Diseconomies of scale are associated with ______.
A. an upward-sloping long-run average total cost curve
B. an upward-sloping short-run average total cost curve
C. a downward-sloping long-run average total cost curve
Explanation: Diseconomies of scale occur when an increase in all inputs results in an increase in long-run average total cost.
User Contributed Comments 3
| User | Comment |
|---|---|
| lohan | how about the shape for the short run? |
| atemple315 | Diseconomies of scale are only applicable in the long run |
| MariaDunet | Scale is what can be changed only in long run |