Business Studies, asked by rhprema22, 10 months ago

Why profitability ratio is decreasing due to diseconomies of scale?

Answers

Answered by bainsjashan
1

Answer:

Diseconomies of scale are when production output increases with rising marginal costs. ... Fixed costs do not change with increases/decreases in units of production volume, while variable costs are solely dependent, which results in reduced profitability. They show how well a company utilizes its assets....

Answered by aayushi7564
0

Answer:

Diseconomies of scale are when production output increases with rising marginal costs. ... Fixed costs do not change with increases/decreases in units of production volume, while variable costs are solely dependent, which results in reduced profitability. They show how well a company utilizes its assets.

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