answersLogoWhite

0

Diseconomies of scale occur when a company's production costs per unit increase as it expands its output. This phenomenon can arise from factors such as management inefficiencies, coordination problems, or overextended resources. For example, a large firm may struggle with communication and decision-making, leading to slower responses to market changes. A graph illustrating this would show the long-run average cost curve rising after a certain level of output, indicating that increased production leads to higher average costs.

User Avatar

AnswerBot

1mo ago

What else can I help you with?

Related Questions

What is diseconomies?

What is diseconomics


What does the writer mean by diseconomies of sale?

Not profiting from economies of scale, because there are no economies of scale. That is meant by diseconomies of scale.


Internal diseconomies of scale?

as growth continues a point may be reached where certain internal diseconomies of scale arise such as management, labour, other inputs


What are the reasons for General Motors dis economies of scale?

diseconomies have this and that which I hate you in.. than you


What are four internal diseconomies of scale?

what are the internal diseconomics of scale operation what are the internal diseconomics of scale operation


What are diseconomies of scale?

When the business becomes too big that there wouldn't be enough managers to manage it efficiently => the marginal cost increases, pushing the average costs up.


What are the reasons for GM diseconomies pf scale?

Diseconomies of scale occur when a company grows so large that the costs per unit start to increase. For General Motors (GM), reasons for these diseconomies can include increased complexity in management and communication, which can lead to inefficiencies. Additionally, as the company expands, it may face higher labor costs due to union demands and regulatory compliance. Finally, overextended supply chains and logistical challenges can contribute to rising operational costs.


What are three type of diagrams you use in electronics?

Wiring diagrams, schematic diagrams, layout diagrams, and logic diagrams.


Diseconomies of scale are illustrated by?

Diseconomies of scale occur when a company's production costs per unit increase as it grows larger, often due to factors like mismanagement, communication breakdowns, or increased complexity. For example, as a factory expands, it may face challenges in coordination and inefficiencies that lead to higher operational costs. This phenomenon highlights that beyond a certain point, scaling up can lead to diminishing returns rather than enhanced efficiency. Ultimately, diseconomies of scale can negate the benefits of economies of scale, impacting profitability.


How does a company recognize that they've achieved economies of scale or diseconomies of scale?

They can recognise this by seeing that, when quantity is changed, the unit cost of production is falling or increasing at a changing rate. When there is an economy of scale, the unit cost of production is decreasing with units produced; with diseconomies, it is increasing. This can also be represented mathematically by finding the derivatives of cost functions.


What is the main reason that firms eventually encounter diseconomies of scale as they keep increasing the size of their store or factory?

Firms have difficulty coordinating production.


Show some diagrams of volatile memory?

displayed some diagrams or pictures displayed some diagrams or pictures displayed some diagrams or pictures