When a firm is experiencing diseconomies of scale,

A) it should increase the amount of labor it hires.
B) it should lower its price to the competitive level.
C) its average total costs will decline if it reduces its scale of operations.
D) it should increase the size of its plant to decrease its average total costs.

Diseconomies of Scale

The phenomenon where production costs per unit increase as a firm's output expands, typically due to inefficiencies and increased complexity.

Average Total Costs

The total cost of production divided by the quantity of output produced; a measure of cost per unit of output.

Scale of Operations

The scope, size, or capacity at which a company or organization performs its activities, impacting costs, efficiency, and potential for growth.