Asked by

Moody’s Channel
on Dec 19, 2024

verifed

Verified

Diseconomies of scale are caused by the law of diminishing marginal returns.

Diseconomies of Scale

Diseconomies of scale occur when a company or business grows so large that the costs per unit increase, leading to decreased efficiency.

Diminishing Marginal Returns

A principle stating that as additional units of a variable input are added to a fixed input, the additional output produced from each new unit will eventually decrease.

  • Comprehend the idea and consequences of economies and diseconomies of scale.
verifed

Verified Answer

BW
BAYLEIGH’s WORLDDec 23, 2024
Final Answer:
Get Full Answer