Diseconomies of scale are associated with:

Question

Quizplus · Accepted Answer

Diseconomies of scale occur when a company becomes too large, and its long-run average total cost curve begins to slope upward. This is due to factors such as communication breakdowns, increased bureaucracy, and difficulty coordinating activities among departments. As a result, unit costs increase as the organization grows beyond a certain size, which is why the long-run average total cost curve becomes upward sloping.

Diseconomies of Scale Are Associated With