_____ occur when the average unit cost of the good or service begins to increase as the capacity and/or volume of throughput increases.
A) Economies of scale
B) Diseconomies of scale
C) Costs of cushioning
D) Capacity cushions

Question

Quizplus · Accepted Answer

Diseconomies of scale occur when the increase in output leads to an increase in average unit cost. This can happen due to various reasons including issues with coordination, communication, and control as well as increased competition for resources.

_____ Occur When the Average Unit Cost of the Good