Samantha owns a gas station.If she moves into a larger lot but finds that her average costs have increased in the long run,we know that Samantha is experiencing

Question

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Diseconomies of scale occur when the long-run average cost (LAC) of production increases as the scale of production increases. This can happen due to a variety of factors such as the difficulty of coordinating and managing a larger operation, increases in transportation and inventory costs, or a lack of specialization and delegation of tasks. Therefore, if Samantha moves into a larger lot but finds that her average costs have increased in the long run, we can conclude that she is experiencing diseconomies of scale.

Samantha Owns a Gas Station