Asked by Mikey Grauso on May 02, 2024
Verified
Diseconomies of scale stem primarily from the difficulties in managing and coordinating a large-scale business enterprise.
Diseconomies of Scale
A situation in which a company or business grows so large that the costs per unit increase, leading to decreased efficiency.
Large-Scale Business
A business that operates on a large scale, often involving extensive operations, significant capital, numerous employees, and a wide geographical reach.
- Master the core principles underlying economies and diseconomies of scale.
Verified Answer
ZK
Zybrea KnightMay 08, 2024
Final Answer :
True
Explanation :
Diseconomies of scale occur when a company grows so large that the costs per unit increase. This is often due to the complexities and inefficiencies in managing and coordinating operations within a very large business.
Learning Objectives
- Master the core principles underlying economies and diseconomies of scale.
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