Which of the Following Is an Example of Diseconomies of Scale

question 332

Multiple Choice

Which of the following is an example of diseconomies of scale?

• A) As the computer industry has expanded, demand for professionally trained computer programmers has also increased, which has caused the salaries of computer programmers to increase.
• B) As a firm hires additional workers, each worker adds less to total output than the previous worker.
• C) A firm increases in size and is therefore able to lower its health insurance costs because as the size of the group insured increases, the premium per person decreases substantially.
• D) As the demand for calculators decreased, the price of calculators actually rose.