How will a firm know if it has grown too large,that is,when it has exceeded its minimum efficient scale of production?

Question

Quizplus · Accepted Answer

When a firm exceeds its minimum efficient scale of production, its long-run average costs will start to increase. This means that the firm is now experiencing diseconomies of scale, where the cost per unit of output increases as the scale of production increases. This could be due to a number of factors such as communication breakdowns, coordination problems, and increased bureaucracy. As the firm grows too large, it may find it difficult to manage and maintain efficiency, leading to higher costs and lower profitability.

How Will a Firm Know If It Has Grown Too