Question
In which of the following case , the production cost
curves shifts upward?Solution
External diseconomies are costs which are outside the control of a single firm and result of the growth of a specific industry. For example, negative externalities, such as road congestion, can result from the growth of an industry in a specific region. Resources may become exhausted and the price of resources may rise as demand outstrips supply. It will shift the production cost curves upwards.
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