Which scenario illustrates the consequences of a firm experiencing diseconomies of scale?

The scenario that illustrates the consequences of a firm experiencing diseconomies of scale is characterized by rapid expansion leading to reduced efficiency. Diseconomies of scale occur when a firm grows too large and experiences an increase in per-unit costs. This can happen due to factors such as increased complexity in management, communication difficulties, or logistical challenges that arise from a larger organizational structure.

In the context of rapid expansion, the firm may find that as it increases production or extends its operations, it struggles to maintain efficiency. This could result in longer decision-making processes, a lack of coordination between departments, or difficulties in quality control. Consequently, the costs associated with production may rise, negating the benefits typically gained from economies of scale, where larger production volumes lead to lower average costs.

The other scenarios do not effectively capture the notion of diseconomies of scale. Investment in employee training, streamlining production processes, and utilizing modern technology effectively are all strategies that can potentially enhance efficiency and productivity, helping firms to avoid or mitigate the effects of diseconomies of scale.