________ exist when a firm's costs rise as a function of its volume of production.
A) Economies of scale
B) Economies of scope
C) Diseconomies of scale
D) Learning curve effects

Question

Quizplus · Accepted Answer

Diseconomies of scale occur when a firm's costs rise as it increases its level of production. This can be due to factors such as increased administrative costs, logistical inefficiencies, or difficulty in coordinating large volumes of production. This is in contrast to economies of scale, where a firm's costs decrease as its volume of production increases, often due to efficiencies gained from increased specialization and standardization.

________ Exist When a Firm's Costs Rise as a Function