A common source of diseconomies of scale is the
A) diminishing marginal returns to capital.
B) diminishing marginal returns to labor.
C) diminishing marginal returns to land.
D) growing complexity of management and organizational structure.

Question

Quizplus · Accepted Answer

As a firm grows, its management and organizational structure can become more complex, leading to inefficiencies and increased costs, which are diseconomies of scale.

A Common Source of Diseconomies of Scale Is the