A firm will experience diseconomies of scale when
...A firm will experience diseconomies of scale when
There are difficulties in coordinating production
There is shortage in labour supply
The size of market is small
There is an increase in the price of raw materials
Correct answer is A
Diseconomies of scale happen when a company or business grows so large that the costs per unit increase. One of the reasons for Diseconomies of scale Loss of direction and co-ordination of production activities.
It is harder to ensure that all workers are working for the same overall goal as the business grows. It is more difficult for managers to supervise their subordinates and check that everyone is working together effectively, as the spans of control have widened. A manager may be forced to delegate more tasks, which while often motivating for his subordinates, leaves the manager less in control.
A major achievement of the Organization of Petroleum Exporting Countries (OPEC) is that ...
Which of the following is NOT a goal of modern budgets? ...
Total revenue can be obtained by multiplying ...
In a given set of data, if the variance is 25, what is the standard deviation? ...
A debenture share entitles its holder to ...
Which of the following factors is the most important in siting a petrol-chemical plants? ...
The magnitude of the national income of a country depends on all the following except the ...
The contribution of petroleum to the economy of nigerian is most prominent in the area of ...
When a country's population is experiencing increase returns, that country is said to be? ...
When the value of a nation’s export is greater than its imports ...