As a table manufacturing company produces more tables,the average total cost of each table produced increases.This could be because:
A)Total fixed costs are decreasing as more tables are produced
B)There are economies of scale
C)There are diseconomies of scale
D)Total variable cost is decreasing as more tables are produced.

Question

As a table manufacturing company produces more tables,the average total cost of each table produced increases.This could be because:​
A)​Total fixed costs are decreasing as more tables are produced
B)There are economies of scale
C)There are diseconomies of scale
D)​Total variable cost is decreasing as more tables are produced.

Quizplus · Accepted Answer

This phenomenon is known as diseconomies of scale, where the average total cost of production increases as the output level increases. This could be due to factors such as an increase in coordination and communication cost, a decrease in the efficiency of labor, or the need for additional equipment and resources to maintain the level of production.

As a Table Manufacturing Company Produces More Tables,the Average Total