Which of the following provides the best explanation for diseconomies of scale?
A) The presence of fixed inputs
B) Reduced monitoring costs
C) Loss of team spirit
D) Indivisible setup costs

Question

Quizplus · Accepted Answer

Diseconomies of scale occur when a company grows so large that the costs per unit increase. This can happen due to factors like loss of team spirit, where coordination and communication become more difficult, leading to inefficiencies.

Which of the Following Provides the Best Explanation for Diseconomies