The reason behind the upward sloping portion of the long run cost curve is:

CA Foundation · Business Economics · MTP · April 2025
The reason behind the upward sloping portion of the long run cost curve is:
(A) A. economy of scale
(B) B. diseconomy of scale
(C) C. diminishing marginal rate of substation
(D) D. None of these

Suggested Answer and Working Notes:

Correct Answer: Option (B)

B. diseconomy of scale

Topics: Theory of Production and Cost

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