16-23 An increase in the cost of the joint production of services as compared to the production of those services independently is an example of diseconomies of scale.

Question

Quizplus · Accepted Answer

An increase in the cost of joint production compared to independent production is an example of diseconomies of scope, not diseconomies of scale. Diseconomies of scale refer to increased costs per unit when a company grows too large.

16-23 an Increase in the Cost of the Joint Production