Factors that might lead to diseconomies of scale include
A) more specialization of labor and management.
B) greater access to financing.
C) quantity discounts on raw materials.
D) greater need for management control and monitoring of production.

Question

Quizplus · Accepted Answer

As a firm grows larger, there is likely to be a greater need for management control and monitoring of production. This can lead to higher administrative costs and increased bureaucracy, which can ultimately lead to inefficiencies and diseconomies of scale.

Factors That Might Lead to Diseconomies of Scale Include