Achieving economies of scale is an important cost driver for certain low-cost leaders.However,there is a saying that "sometimes bigger is worse" because at some point costs increase as output increases.This is referred to as:

Question

Quizplus · Accepted Answer

Sometimes firms experience diseconomies of scale because benefits to scale cannot go on indefinitely and at some point associated costs as well as physical limitations negate the benefits of larger outputs.

Achieving Economies of Scale Is an Important Cost Driver for Certain