Internal Dis-Economies of Scale

Internal dis-economies of scale: cost disadvantages that a business will experience in the form of higher average cost of production when a firm expands the level of production

 

Management Diseconomies

Large firms are divided into specialist departments, and each department has a manager responsible for running it. In a very large business, there are so many departmental managers that decisions will take a long time and there may be many disagreements.

 

Labour Diseconomies

Specialization occurs so monotony and inefficiency also takes place.



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