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Economics - Financial Markets
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Which of the following is associated with diseconomies of scale? a. Producing 1,000 lawn mowers costs $100,000 while producing 2,000 lawn mowers costs $150,000. b. 50 workers and 5 machines produce 1,000 units of output while 60 workers and 5 machines produce 1,200 units of output. c. 50 workers and 5 machines produce 1,000 units of output while 100 workers and 10 machines produce 2,500 units of output. d. Producing 1,000 lawn mowers costs $100,000 while producing 2,000 lawn mowers costs $220,000. The answer is D, but I'm not quite sure why.............
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