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Alexis Breck
on Nov 25, 2024

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If a firm increases all its inputs by 10 percent and its output increases by 15 percent, the firm is experiencing diseconomies of scale.

Diseconomies of Scale

The phenomenon where production costs per unit increase as the scale of operation expands.

Inputs

Resources used in the production process, including labor, capital, materials, and energy, to create output or goods and services.

Output

The amount of goods or services produced by a business, sector, or economy over a specific period.

  • Comprehend the fundamentals of economies and diseconomies of scale.
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Maliyah BartleyNov 29, 2024
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