The situation that occurs when the addition of resources creates inefficiencies is known as ________.
A) diseconomies of scale
B) marginal utility
C) marginal returns
D) break-even
E) inverse efficacy

Question

Quizplus · Accepted Answer

Diseconomies of scale occur when increasing the scale of production leads to decreasing efficiency or increasing costs per unit. This is often due to communication difficulties, coordination problems, and a lack of specialized management. The other options (B, C, D, and E) are unrelated to this situation.

The Situation That Occurs When the Addition of Resources Creates