Increased time required to pass communications through an organization as it grows in size is an example of a diseconomy of scale.

Question

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As an organization grows in size, the complexity of its structure and the number of layers within it often increase, leading to longer times for communication to pass through the organization. This is considered a diseconomy of scale because it represents a decrease in efficiency and an increase in costs associated with larger organizational size.

Increased Time Required to Pass Communications Through an Organization as It