Which of the Following Is a Reason Why a Firm

Multiple Choice

Which of the following is a reason why a firm would experience diseconomies of scale?

A) To finance an increase in the size of its plant, a firm must borrow more money or sell more shares of stock.
B) As the size of the firm increases, it becomes more difficult to find markets where it doesn't already have operations.
C) As the size of the firm increases, it becomes more difficult to coordinate the operations of its manufacturing plants.
D) As the size of the firm increases, it must operate in other countries where differences in language, customs, and laws increase its average costs.