Which of the following is the most likely cause of diseconomies of scale?
A)Increasing returns to scale.
B)A small scale of operations and output.
C)Low productivity.
D)Complex interpersonal communication structures.

Question

Quizplus · Accepted Answer

Diseconomies of scale occur when an organization grows too large and its management structures become too complex, leading to communication breakdowns, bureaucracy, and a decrease in productivity. Therefore, choice D, complex interpersonal communication structures, is the most likely cause of diseconomies of scale. The other choices, A, increasing returns to scale, B, a small scale of operations and output, and C, low productivity, are not causes of diseconomies of scale.

Which of the Following Is the Most Likely Cause of Diseconomies