The situation that occurs when adding more resources creates inefficiencies is known as ________.
A)diseconomies of scale
B)marginal utility
C)marginal returns
D)diseconomies of scope

Question

Quizplus · Accepted Answer

Diseconomies of scale occur when adding more resources leads to increased costs per unit of output, which means that the company becomes less efficient. This is typically due to issues such as communication problems, coordination difficulties, and decreased motivation among employees. As a result, the best course of action is to identify the causes of the inefficiencies and take steps to address them, such as improving communication channels, streamlining processes, and providing additional training to employees.

The Situation That Occurs When Adding More Resources Creates Inefficiencies