Diseconomies of scale are said to exist when inputs are increased by some percentage and output increases by a(n) __________ percentage, causing unit costs to __________.
A)greater; fall
B)smaller; fall
C)greater; rise
D)smaller; rise
E)equal; fall

Question

Quizplus · Accepted Answer

Diseconomies of scale occur when increasing the amount of inputs by a certain percentage leads to a smaller percentage increase in output, resulting in rising unit costs.

Diseconomies of Scale Are Said to Exist When Inputs Are