1.2.3 diseconomies of scale

Question 1

Diseconomies of scale

Answer 1

Rising average costs when a firm becomes too big

Question 2

DOS Bureaucracy

Answer 2

Too many resources used/wasted in administration and decision making is too slow

Question 3

DOS Communication problems

Answer 3

Workers within large firms may have a hard time communicating with each other due to distance/location/time

Question 4

DOS Lack of control

Answer 4

Large firms are harder to control/coordinate which may require more supervision and layers of management, which can raise costs

Question 5

DOS Distance between top management and workers at bottom

Answer 5

Workers may feel unimportant and not involved as they are in such a large business and top management may be unaware of their workers needs