Under what circumstances does an increase in inputs by x percent result in an increase in output of less than x percent?
A)Diseconomies of scale.
B)Constant returns to scale.
C)Economies of scale.
D)Minimum efficient scale.

Question

Quizplus · Accepted Answer

Diseconomies of scale occur when an increase in inputs results in a less than proportional increase in output. This can be due to increasing inefficiencies, communication difficulties, or increasing coordination costs as the firm grows in size.

Under What Circumstances Does an Increase in Inputs by X