As a firm grows larger

A) economies of scale set in,then diseconomies of scale.
B) diseconomies of scale set in,then economies of scale.
C) economies of scale and diseconomies of scale set in at the same time.
D) neither economies of scale nor diseconomies of scale set in.

Diseconomies of Scale

A situation in which a firm experiences an increase in average costs due to an increase in its size or output level, often resulting from inefficiencies and higher per unit costs.

Economies of Scale

Cost advantages that enterprises obtain due to their scale of operation, with cost per unit of output generally decreasing with increasing scale.