Diseconomies of scale occur when firms costs are reduced with the production of output in large quantities.

Question

Quizplus · Accepted Answer

Diseconomies of scale occur when a firm's costs increase as output increases beyond a certain level. This could be due to factors such as increased coordination and communication costs, difficulties in managing a larger workforce, or the need for more sophisticated technology and infrastructure.

Diseconomies of Scale Occur When Firms Costs Are Reduced with the Production