in the long-run, a company that produces and sells popcorn incurs total costs of $1,350 when output is 70 canisters and $1,200 when output is 100 canisters. when this popcorn company increases production from 70 to 100 canisters, it exhibits diseconomies of scale because total cost is falling as output rises. diseconomies of scale because average total cost is rising as output rises. economies of scale because total cost is falling as output rises. economies of scale because average total cost is falling as output rises.
