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Questions › IIT JAM › IIT JAM 2025 › Q38
2 marksMicroeconomics › Costs of production › Long-run cost, economies and diseconomies of scaleHardabout 3 min

IIT JAM 2025 Question 38: Costs of production

Which of the following statements is/are CORRECT for diseconomies of scale?

(A) The elasticity of cost with respect to output is less than one.

(B) The elasticity of cost with respect to output is greater than one.

(C) The elasticity of cost with respect to output is equal to one.

(D) Marginal cost is greater than average cost.

Select all that apply.

Answer and worked solution

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Costs of production has come up 83 times in 7 exams since 2006.

What this question tests

This question is on Long-run cost, economies and diseconomies of scale, part of Costs of production in Microeconomics.

The long-run average cost curve as an envelope, its U-shape and the minimum efficient scale.

TestStop has 8 past-paper questions on this subtopic; the nearest in year are below.

  • IIT JAM 2022 · Q10A long-run cost function for a product exhibits economies of scale if
Take this paper as a timed mockMore on Long-run cost, economies and diseconomies of scale

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Question from the IIT JAM 2025 paper. Solutions are TestStop's own. Not affiliated with or endorsed by any examination authority.