1. Which of the following events would contribute to diseconomies of scale?

Select one correct answer

1. The firm needing to double the capacity of a pipe hat transports its fuel when the production level is doubled.
2. Fixed costs such as lobbying or the rent on a (rarely used) factory warehouse.
3. The difficulty of monitoring workers' effort as the number of employees increases to increase the amount of output produced by the firm.
4. The positive network effects of the good or service it produces.