O-LevelEconomicsMicroeconomic decision makers2281/12 · May/June 2019 · Q131 Mark

What is the definition of diseconomies of scale?

Athe decrease in average revenue as output increases

Bthe decrease in fixed cost as output increases

Cthe increase in average total costs as output increases

Dthe increase in total costs as output increases

✓ Correct answer

C: the increase in average total costs as output increases

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Topic: Microeconomic decision makers, O-Level Economics (syllabus 2281). Multiple choice, 1 mark.
Source: O-Level Economics, May/June 2019 Paper 1 Variant 2, question 13.

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