Correct Answer: C. It faces diminishing returns and inefficiency
Why? Going beyond the optimum scale increases costs and reduces efficiency due to diseconomies of scale.
If you think there is any confusion in the given MCQs, you can comment below.
docmcqs.com is Pakistan's No.1 online platform for preparing for all types of exams including PPSC, FPSC, KPSC, SPSC, Ministry of Defence, and for one-paper MCQs. This includes Pedagogy MCQs, general knowledge MCQs, current affairs MCQs, and much more.