Which of the following is the most likely cause of diseconomies of scale?

Question

Quizplus · Accepted Answer

Diseconomies of scale occur when an organization grows too large and its management structures become too complex, leading to communication breakdowns, bureaucracy, and a decrease in productivity. Therefore, choice D, complex interpersonal communication structures, is the most likely cause of diseconomies of scale. The other choices, A, increasing returns to scale, B, a small scale of operations and output, and C, low productivity, are not causes of diseconomies of scale.

Which of the Following Is the Most Likely Cause of Diseconomies