Increasing the cost of a project can reduce the time required to complete the project up to a certain point, beyond which, the time required would increase due to ________.
A) economies of scale
B) diseconomies of scale
C) economies of scope
D) diseconomies of scope

Question

Quizplus · Accepted Answer

The increase in cost initially helps with the allocation of more resources, utilization of more efficient technology and increased productivity resulting in a reduction in project completion time. However, beyond a certain point, the increase in cost can lead to inefficiencies, diminishing returns, sub-optimal performance, and bottlenecks creating more obstacles and increasing the completion time. These negative effects are known as diseconomies of scale.

Increasing the Cost of a Project Can Reduce the Time