Diseconomies of scale is a result of
A) mismanagement.
B) difficulties of coordinating and controlling a large enterprise.
C) specialization of labor, capital, and management.
D) technological progress.
E) larger fixed costs as the firm's production increases.

Question

Quizplus · Accepted Answer

Diseconomies of scale occur when a company becomes too large to effectively coordinate and control its operations. As the size of the company increases, it becomes more difficult to manage and communication becomes more complex. This can lead to inefficiencies and higher costs.

Diseconomies of Scale Is a Result of