Diseconomies of scale is a concept that states that the average unit cost of a service or good can be reduced by increasing its output rate.

Question

Quizplus · Accepted Answer

Diseconomies of scale occur when the average unit cost of production or service increases as output rates are increased. This can happen due to factors such as increased complexity, inefficient communication and coordination, and decreased employee motivation.

Diseconomies of Scale Is a Concept That States That the Average