Internal Economies and Diseconomies arise due to ________________.

Overall industry-level changes

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Changes at the Firm level

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Both (a) and (b)

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Neither (a) nor (b)

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Solution

The correct option is C Changes at the Firm level
Internal Economies and Diseconomies arise due to changes at the Firm level. Internal Economies and Diseconomies in operations depend on the internal factors within the firm.
Internal Economies or diseconomies can be defined as a situation when the production of the firm gets affected because of the internal factors of the firm only. Hence, option B is correct.

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