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WAEC Economics 2024 Objective — Question 18

Question 18 of 50 from the West African Examinations Council (WAEC) Economics 2024 Objective paper, with the correct answer and a full explanation.

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18. Which of the following best explains diseconomies of scale? Increase in output causes

  • A. the average cost to rise.Correct
  • B. marginal revenue to fall.
  • C. marginal cost to fall.
  • D. the firm to be destabilized.

Explanation

When average cost rises as output is increased, diseconomies of scale have set in.

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