Which of the following situations depicts diseconomies of scale?

Question

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Diseconomies of scale occur when the firm increases its production beyond a certain level and the average total cost per unit starts to increase. In option A, the average total cost of the firm increases when it increases its production, which suggests that it is facing diseconomies of scale. Option B indicates economies of scale, as the average total cost decreases with an increase in production. Option C indicates constant returns to scale, and option D suggests that the firm can decrease its production without facing any significant change in costs, indicating constant returns to scale.

Which of the Following Situations Depicts Diseconomies of Scale