Question

What are the diseconomies of scale? Explain with illustrations?

Answer 1

Explanation:

Diseconomies of scale are when production output increases with rising marginal costs. ... Any increase in output beyond Q2 leads to a rise in average costs. This is an example of diseconomies of scale – a rise in average costs due to an increase in the scale of production.

Answer 2

Answer:

Diseconomies of scale are when production output increases with rising marginal costs. ... Any increase in output beyond Q2 leads to a rise in average costs. This is an example of diseconomies of scale – a rise in average costs due to an increase in the scale of production.

Explanation:

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