Get premium membership and access revision papers with marking schemes, video lessons and live classes.

Processing. Please wait.

Meaning and types of internal dis-economies of scale

Answer Text:
Diseconomies of scale
-Refers to the problems that a firm experiences due to its expansion.
-They are classified into Internal and external diseconomies of scale.
Internal diseconomies:
-These are disadvantages that a firm experiences as a result of operating beyond the optimum size.
-Managerial diseconomies of scale.
-High overhead costs
-Slow decision making process
-Increased wastage
-High cost of inputs