Question: When Simple Semiconductors was operating at the minimum efficient scale of 10,00012,000 units per month, the firm's cost per unit was $45. However, when the

When Simple Semiconductors was operating at the minimum efficient scale of 10,00012,000 units per month, the firm's cost per unit was $45. However, when the output level was increased beyond 12,000 units, the cost per unit increased to $47. This increase was attributed to the wear-and-tear of the machinery, and complexities of managing and coordinating. What is this phenomenon known as?

Group of answer choices

minimum efficient scale

diseconomies of scale

experience curve effect

learning-curve effect

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!