WAEC - Economics (2020 - No. 17)
A large firm may experience diseconomies of scale if there is
difficulty in coordinating decisions
division of labor in production
employment of more specialist
decrease in the cost of production
Explanation
Diseconomies of scale occur when a firm or business grows so big that the costs per unit of output increase. If the firm becomes so large that it can no longer efficiently coordinate production activities, it will most likely experience diseconomies of scale.
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