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Diseconomies of scale occur when:

Diseconomies of scale occur when:
Take Free Practice Test On 2026 JAMB UTME, Post UTME, WAEC SSCE, GCE, NECO SSCE
  • A Output becomes completely fixed
  • B Revenue exceeds production cost
  • C Average cost rises with expansion
  • D Fixed cost disappears fully
Correct Answer: Option C
Explanation:
Diseconomies of scale happen when firms become too large and management or coordination problems increase production costs.

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