Economies of scale and diseconomies of scale

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Economies of scale and diseconomies of scale, what do these terms mean, when do they occur and how do they differ? Can you provide an example of economies and scale and dis-economies of scale.

Then, answer the question below. Which one best described diseconomies of scale?

A. per unit costs increase when all resources are increased.

B. per unit costs decrease when all resources are increased.

C. per unit costs remains constant when all resources are increased.

 

D. per unit costs is no longer important.

Reference no: EM13699535

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