Asked by Bradley Fabretti on May 02, 2024
Verified
Diseconomies of scale would most likely occur for all of the following reasons EXCEPT ________.
A) production volume exceeds capacity
B) size of firm too large to manage
C) employees lack motivation
D) technology too specialized
Diseconomies of Scale
The phenomenon where, as a firm or production process increases in size beyond a certain point, the cost per unit increases, leading to reduced efficiency.
Production Volume
The total quantity of products manufactured within a specific period, indicating the level of output.
- Determine the elements contributing to diseconomies of scale and their effects on business operations.
Verified Answer
ZK
Zybrea KnightMay 04, 2024
Final Answer :
D
Explanation :
Diseconomies of scale occur when a company grows so large that the costs per unit increase. It happens due to factors like management challenges, communication issues, and employee motivation problems. Specialized technology, however, typically leads to efficiencies and cost savings, not diseconomies of scale.
Learning Objectives
- Determine the elements contributing to diseconomies of scale and their effects on business operations.
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