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If Temper Company, a manufacturer of mattresses, was considering moving its production facilities to China but decided against it because the additional costs of shipping the mattresses back to the U.S. would offset the cost savings associated with moving the production facilities, the increased costs associated with shipping would be an example of A) learning-curve economies. B) diseconomies of scale. C) economies of scale. D) competitive advantages.

Respuesta :

Answer:

The correct answer is diseconomies of scale.

Explanation:

The diseconomy of scale is the effect that occurs on the costs of a given production. These effects generate increasing costs for the company for each unit of product that is manufactured. In this way we mean that the opposite occurs with economies of scale, where each time we increase the number of units produced, the unit cost is reduced. Specifically and technically, a diseconomy of scale occurs when a percentage increase in production is less than the percentage increase in inputs.

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