Scenario A. You and your classmates are debating the true meaning of the word "economy" in a manufacturing context. Anil says that to have economy, the company must work for lower costs per unit of production. Bob argues that having economy means using the same company resources to make more than one thing. Christine says that having economy means avoiding the costs of growing too large and creating waste.
-Christine defines "economy" in a manufacturing context as

Question

Quizplus · Accepted Answer

Christine is referring to "diseconomies of scale," which occur when a company grows too large and inefficiencies lead to increased per-unit costs.