Diseconomies of scale are
A) Environmental forces that inherently have a negative impact on business growth.
B) The realization of lower per-unit costs.
C) The costs associated with an organization being too big.
D) Employing materials/processes in related products or services.
E) An inability to achieve the advantages of larger organizational size.

Question

Quizplus · Accepted Answer

Larger companies also are more difficult to coordinate and control. While size may enhance efficiency by spreading fixed costs over more units, it also may create administrative difficulties that inhibit efficient performance. To describe this type of problem, a new term has entered the business vocabulary: diseconomies of scale, or the costs of being too big.

Diseconomies of Scale Are