Which of the following provides the best explanation for diseconomies of scale?

A) the firm is too small to take advantage of specialization.
B) large management structures may be bureaucratic and inefficient.
C) if there are too many employees, the work place becomes crowded and people become less productive.
D) average fixed costs are rising.

Diseconomies of Scale

The scenario where costs start increasing as a company or project becomes too large, leading to inefficiency.

Bureaucratic

Relating to a system of government in which most of the important decisions are made by state officials rather than by elected representatives.

Large Management

Refers to the administration and execution of strategic objectives within large organizations, involving complex structures and substantial resource allocation.