Time compression diseconomies happen when __________.
A)more sellers attract more buyers, who in turn attract more sellers
B)an action increases cost and efficiency
C)the value of a product increases with the number of users
D)firms establish long-term contracts with customers

Question

Quizplus · Accepted Answer

Time compression diseconomies refer to the increased costs and reduced efficiency that occur when firms try to produce a product or service at an increasingly faster rate. This can happen when tasks are rushed, workers are overburdened, or corners are cut. In other words, when a firm tries to compress time, they often run into quality control issues, higher costs, and lower productivity. This contrasts with economies of scale, where costs decrease as production increases. The other choices (A, C, D) don't describe time compression diseconomies.

Time Compression Diseconomies Happen When __________