Henry Ford expected to be able to produce cars at a lower average cost at his Ri

Question

Henry Ford expected to be able to produce cars at a lower average cost at his River Rouge plant. Unfortunately, because of diminishing returns, his costs were actually higher. What is the error in this statement? In the long run, diseconomies of scale will cause average total cost to rise not diminishing returns. The decision to go to the larger plant indicates that the planning period is in the long run, so the concept of diminishing returns does not apply. The statement confuses diminishing returns with diseconomies of scale. All of the above.

Explanation / Answer

when talking aobut this problem i find that the diseconomiesof scale would cause the average total cost to rise at teh end notthe dimishin returns upon this inference i would most benifit from saying b is theanswer

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