Diseconomies of scale can occur as a result of which of the following?
A) Increasing marginal returns as the firm increases its size.
B) Lower total fixed cost as the firm increases its size.
C) Greater specialisation of labour and capital as the firm increases its size.
D) Management difficulties as the firm increases its size.
E) Increases in the labour force not matched by increases in the plant.

Question

Quizplus · Accepted Answer

Diseconomies of scale occur when a firm becomes too big to manage efficiently, leading to increased communication costs, bureaucracy, and coordination problems.

Diseconomies of Scale Can Occur as a Result of Which