What term is used to describe the extra costs that are incurred in running an operation as it gets larger?
A) Critical point index
B) Negative returns on investment
C) Diseconomies of scale
D) Downshifting

Question

Quizplus · Accepted Answer

Diseconomies of scale refer to the increase in costs that occur as a company grows in size beyond a certain point, resulting in a decrease in efficiency and productivity. This is the opposite of economies of scale, which refer to the cost savings a company experiences as it grows larger.

What Term Is Used to Describe the Extra Costs That