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7.5.7 internal and external diseconomies of scale

What happens to LRAC when a single firm becomes too large to manage effectively?

A

Internal diseconomies of scale occur when a single firm grows too large to manage well, raising its LRAC.

B

External diseconomies of scale occur when a single firm grows too large to manage well, raising its LRAC.

C

Internal economies of scale occur when a single firm grows too large to manage well, raising its LRAC.

D

External economies of scale occur when a single firm grows too large to manage well, raising its LRAC.

7.5.7 internal and external diseconomies of scale Flashcards

  1. Intl A Level
  2. /Economics
  3. /7.5.7 internal and external diseconomies of scale

21 flashcards on CIE Intl A Level Economics 7.5.7 internal and external diseconomies of scale: the key terms and definitions you need to recall.