If a firm enlarges its factory size and realizes higher average costs of production then

A) it has experienced economies of scale.
B) it has experienced diseconomies of scale.
C) it has experienced constant returns to scale.
D) the long-run average cost curve slopes downward.
E) the long-run average cost curve shifts upward.

Factory Size

The physical dimensions or capacity of a manufacturing facility, which may influence its output, efficiency, and employment levels.

Average Costs

The total cost of production divided by the number of goods produced, used to calculate the cost on a per-unit basis.

Diseconomies of Scale

A condition in which a company or business grows so large that the costs per unit increase.