the ABC corporation decreases all lf its inputs by 12 percent and finds that its

Question

the ABC corporation decreases all lf its inputs by 12 percent and finds that its output falls by only 8 percent. this means that initially it was producing
A. In the range of diseconomies of scale. B. In the range of economies of scale. C. Where AP is less than MP D. At the point of minimum efficient scale. the ABC corporation decreases all lf its inputs by 12 percent and finds that its output falls by only 8 percent. this means that initially it was producing
A. In the range of diseconomies of scale. B. In the range of economies of scale. C. Where AP is less than MP D. At the point of minimum efficient scale.
A. In the range of diseconomies of scale. B. In the range of economies of scale. C. Where AP is less than MP D. At the point of minimum efficient scale.

Explanation / Answer

Answer

A. In the range of diseconomies of scale.

The decrease in the input is higher than the decrease in the output means the level of output produced is between the range of diseconomies of scale because at this place the output is increasing lower than the input.

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