Which term refers to increases in unit costs as production increases?
A) vicious circle
B) economies of scope
C) diseconomies of scale
D) experience curve effects

Question

Quizplus · Accepted Answer

Diseconomies of scale refer to the increase in unit cost as production increases beyond a certain point. This can happen due to factors such as inefficiencies, coordination problems, and increased complexity in larger organizations. It is the opposite of economies of scale, where production costs decrease as production increases up to a certain point.

Which Term Refers to Increases in Unit Costs as Production