When long-run average costs increase as output increases, there are A

When long-run average costs increase as output increases, there are constant returns to scale. They usually occur in the long-run when both capital and labour are variable. On the other hand, diseconomies of scale refer to the situation itself when a firm grows so huge that costs per unit increase as the output increases unlike economies of scale where long-run average costs decrease as the output of the company increases. Economic actors accrue this cost disadvantages due to the increase in the size of the organization hence experiencing difficulties in managing the broader workforce. Furthermore, when a business has constant returns to scale, economies and diseconomies of scale are likely to be minimal.