_____ occur when the average unit cost of a good or service begins to increase as the capacity and/or volume of throughput increases.
A) Economies of scale
B) Diseconomies of scale
C) Demand lags
D) Nonphysical constraints

Question

Quizplus · Accepted Answer

Diseconomies of scale occur when a business grows to a point where it becomes less efficient and its average cost per unit increases. This may be due to a variety of factors such as increased bureaucracy, communication difficulties, and logistical inefficiencies.

_____ Occur When the Average Unit Cost of a Good