Diseconomies of scale can occur as a result of which of the following?
A) increasing marginal returns as the firm increases its size
B) lower total fixed cost as the firm increases its size
C) management difficulties as the firm increases its size
D) greater specialization of labor and capital as the firm increases its size
E) increases in the labor force not matched by increases in the plant

Question

Quizplus · Accepted Answer

Diseconomies of scale occur when a firm becomes too large, leading to inefficiencies such as management difficulties, which can increase costs.

Diseconomies of Scale Can Occur as a Result of Which