When an increase in a firm's scale of production leads to higher average costs it is referred to as:

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When a firm's scale of production increases to a point where it becomes less efficient and results in higher average costs, it is called diseconomies of scale. This could happen due to various reasons, such as difficulty in coordinating larger production lines, increased managerial overheads, and decreased levels of motivation amongst employees.

When an Increase in a Firm's Scale of Production Leads