Question

When a firm gets so large that coordination and management of workers and other inputs becomes costly and difficult, it is experiencing which of the following? A Diseconomies of scale B Diminishing marginal product C Economies of scale D Economies of scope

Answer 1

The correct answer is the option A: Diseconomies of scales.

Step-by-step explanation:

To begin with, the concept known as ''diseconomies of scales'', in the field of economics and management, refers to the situation where an organization finds itself in problems due to the fact that a large production is being produced by them and the coordination and management of that large production is beginning to cause trouble and that impacts in the fact that the company will produce good or services with an increase in the cost per unit of the products.