When Company X increases its production volume by 1%,the firm's total cost of production increases by more than 1%.This is an example of ________.

A) experience curve effects
B) diseconomies of scale
C) economies of scale
D) inelasticity

Diseconomies of Scale

The phenomenon where production costs per unit increase as a firm's output increases, usually due to inefficiencies that arise with large-scale production.

Production Volume

The quantity of products that a manufacturing system can produce over a specific period of time.

Total Cost

The complete cost of production or operation, including fixed and variable costs, associated with a business activity or process.