internal diseconomies of scale

Question 1

what is the definition of internal diseconomies of scale?

Answer 1

• internal diseconomies of scale are the higher average costs that firms may experience when they grow beyond a certain size or scale of production

Question 2

why do overly large firms face managerial iDEOS?

Answer 2

• this is because organization, administration, planning & control are all more complex in a large operation