Cost advantages based on diseconomies of scale are likely to be rare.

Name: Cost advantages based on diseconomies of scale are likely to be rare.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Diseconomies of scale occur when a company becomes too large and faces increased costs due to inefficient management, communication, and coordination. This can lead to higher costs per unit of output, which would not result in cost advantages. Therefore, cost advantages based on diseconomies of scale are unlikely to occur frequently.

Cost Advantages Based on Diseconomies of Scale Are Likely to Be