Under which conditions might diseconomies of scale result?
A) improved coordination brought about by bureaucracy
B) increasing price of inputs
C) increasing output prices
D) usage of a large amount of indivisible inputs by the firm

Question

Quizplus · Accepted Answer

Diseconomies of scale can result when the increasing price of inputs leads to higher per-unit costs as a firm expands its production.

Under Which Conditions Might Diseconomies of Scale Result