Complete Question:
Increasing complexity of management and challenges of coordination as firms produce more of the same product can be a source of
Group of answer choices
a. economies of scale.
b. learning curves.
c. diseconomies of scale.
d. increasing marginal productivity.
Answer:
C. diseconomies of scale.
Explanation:
Increasing complexity of management and challenges of coordination as firms produce more of the same product can be a source of diseconomies of scale.
Diseconomies of scale can be defined as the cost disadvantages or pitfalls that an organization accrues as a result of its expansion or increase the level of production and output. This ultimately implies that, due to an increase in quantity of goods being produced or organizational size, the cost per unit for each product rises.
