A situation where the level of output, scale and average costs are all rising is called
A) decreasing returns to scale
B) diseconomies of scale
C) diminishing returns to scale
D) both a and b are correct

Question

Quizplus · Accepted Answer

Diseconomies of scale occur when the average cost of production increases as the scale of production increases. This can happen due to a number of factors, such as increased coordination costs, inefficiencies in large-scale production, or diminishing returns to scale.

A Situation Where the Level of Output, Scale and Average