Under which conditions might diseconomies of scale result?
A) hampered coordination brought about by bureaucracy
B) increasing costs of inputs
C) the firm uses a large amount of indivisible inputs
D) both A and B

Question

Quizplus · Accepted Answer

Diseconomies of scale can result from hampered coordination brought about by bureaucracy, as well as increasing costs of inputs. Additionally, the use of a large amount of indivisible inputs can lead to diminishing returns and increased costs as the scale of production increases. Therefore, both options A and B are correct.

Under Which Conditions Might Diseconomies of Scale Result