16-64 Large-scale investment projects that lead to excess capacity and integration problems that create cost overruns and control problems are examples of
A)diseconomies of scale.
B)economies of scale.
C)economies of scope.
D)diseconomies of scope.
E)constant returns to scale.

Question

Quizplus · Accepted Answer

Diseconomies of scale occur when a company or business grows so large that the costs per unit increase. Large-scale investment projects can lead to inefficiencies and increased costs, which are characteristic of diseconomies of scale.

16-64 Large-Scale Investment Projects That Lead to Excess Capacity and Integration