Criola Motors Company,a major player in the automotive industry,sets up new manufacturing units to expand its operations.The company has been incurring heavy losses due to higher costs since the expansion.This is an example of _____

Question

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This scenario is an example of diseconomies of scale because as the company expands its operations, it is incurring higher costs and experiencing losses. This could be due to issues such as increased bureaucracy, communication difficulties, or the need for larger management teams, which could result in higher costs and reduced efficiency. Therefore, the company is facing diseconomies of scale, which is the opposite of economies of scale.

Criola Motors Company,a Major Player in the Automotive Industry,sets Up