What factors can create diseconomies of scale?

• A. Increased coordination and communication problems, managerial inefficiencies, and bureaucratic costs as firm size grows.
• B. Proportional increases in all inputs that keep average costs unchanged as output increases.
• C. Bulk purchasing discounts, greater specialization, and more efficient capital use that lower per-unit costs.
• D. Adoption of improved production techniques and automation that reduce marginal cost at larger scale.

Answer: (A)