Answer:
increase in total variable cost.
Explanation:
Variable costs change depending on the company's total output. If the output decreases, the variable costs will decrease, if the output increases, the variable costs will increase, e.g. materials. On the other hand, fixed costs do not vary depending on the company's output, that is why they are fixed, e.g. rent, depreciation.
A firm experiences diseconomies of scale when it: grows so large that the cost per unit has to increase.
<h3>What is referred to as diseconomies of scale?</h3>
This has to do with the fact that a business has become so large. When it grows to be so big, the cost for every unit would then have to raise.
Limited resources and infrastructure could be the reasons why there may be diseconomies of scale.
Read more on diseconomies of scale here:
brainly.com/question/15827092
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The answer to this question is False.