Multiple Choice
DFN Inc.expanded its manufacturing plant to employ more equipment because the management of the company thought this would help them attain more sales.Unfortunately, this affected the cost of each unit produced because the company invested more finances for better equipment.This also led to a decrease in sales as customers were not willing to buy the product for an increased price.This scenario best illustrates _____.
A) competitive failure
B) diseconomies of scale
C) economies of scale
D) virtuous circle
Correct Answer:
Verified
Correct Answer:
Verified
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