Diseconomies of scale occur when firms cannot handle the complexities of large-scale management.

Name: Diseconomies of scale occur when firms cannot handle the complexities of large-scale management.
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Question

Diseconomies of scale occur when firms cannot handle the complexities of large-scale management.​

Quizplus · Accepted Answer

Diseconomies of scale refer to the point at which a firm becomes too large to efficiently manage and experiences a decrease in productivity, increasing unit costs as a result. This can be due to difficulties in communication, coordination, and control, among other factors.

Diseconomies of Scale Occur When Firms Cannot Handle the Complexities