As a ﬁrm increases in size, it is more likely to experience diseconomies of scale.

Name: As a ﬁrm increases in size, it is more likely to experience diseconomies of scale.
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Question

Quizplus · Accepted Answer

As a firm grows in size, it may become more difficult to manage and coordinate all the different departments and activities, leading to inefficiencies and higher costs. This is known as diseconomies of scale, and it can offset the benefits of economies of scale that the firm may have experienced at smaller sizes.

As a ﬁRm Increases in Size, It Is More Likely