Refer to Figure 9.6. For this firm, diseconomies of scale set in after ________ units of output.

A) q₁
B) q₂
C) q₃
D) q₄

Diseconomies of Scale

A situation where, as a firm increases production, the costs per unit increase instead of decreasing due to inefficiencies.

Output

The total amount of goods or services produced by a person, machine, or company within a certain period.