Diseconomies of Scale Flashcards
1
Q
What is Alienation?
A
Unmotivated Employers due to large firm
2
Q
What is Bureaucracy?
A
More layers of rules & management
3
Q
What is Communication (diseconomies of scale)?
A
Can be difficult to spread news to everyone in the firm
4
Q
What is Diseconomies of Scale?
A
If the Scale of Production Rises too much, Average Cost of Productions starts to rise
