When a firm experiences diseconomies of scale It should use

When a firm experiences diseconomies of scale: It should use more resources. It should decrease its price. It should decrease its scale of operations to reduce its average total cost. Its average total cost will increase if it reduces its scale of operation.

Solution

Diseconomies of scale arises when, with increase in output, average total cost of production increases.

Therefore, when a firm experiences diseconomies of scale, it should decrease output (scale of operations) to reduce average total cost.

Correct option (C).