Which of the following is probably not an acceptable solution to the problem of diseconomies of scale?
A)reorganization
B)building a larger plant
C)dividing operations
D)hiring new managers

Question

Quizplus · Accepted Answer

Building a larger plant is likely not an acceptable solution to the problem of diseconomies of scale because diseconomies of scale occur when a company grows so large that the costs per unit increase. Expanding the physical size of operations, such as building a larger plant, could exacerbate the problem by increasing complexity and costs, rather than reducing them.

Which of the Following Is Probably Not an Acceptable Solution