Question 2 If an increase in the output rate of an operation has resulted in an increase in the average unit cost at that operation, that operation could be described as suffering from diseconomies of scale high fixed costs capacity chunking a low breakeven point outsourcing
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Diseconomies of scale
Diseconomies of scale approach regarding while a trade or association turn out to be so huge, or so unproductive, that the price of its goods and services begin to increase. A company is able to cultivate to a large extent prior to the reimbursement of enlargement start to build
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