Diseconomies of scale is
A) a short-run phenomenon.
B) a long-run phenomenon.
C) the result of decreasing marginal returns.
D) possible only when the firm's plant size is fixed.
E) the result of increasing marginal returns.

Question

Quizplus · Accepted Answer

Diseconomies of scale is a long-run phenomenon where a firm experiences an increase in per-unit cost as it increases its output beyond a certain point. This is caused by factors such as the difficulty in coordinating and managing large operations, communication problems, and increased bureaucracy, which can lead to inefficiencies and increased costs.

Diseconomies of Scale Is