The figure given below shows three Short Run Average Total Cost (SRATC) curves and the Long Run Average Total Cost (LRATC) curve of a firm.Figure 8.3

-When a firm grows to such an extent that it is unable to coordinate between its employees properly it is likely to experience economies of scale.

Question

The figure given below shows three Short Run Average Total Cost (SRATC) curves and the Long Run Average Total Cost (LRATC) curve of a firm.Figure 8.3
 
-When a firm grows to such an extent that it is unable to coordinate between its employees properly it is likely to experience economies of scale.

Quizplus · Accepted Answer

This scenario describes diseconomies of scale, where a firm's growth leads to inefficiencies, such as coordination problems among employees, resulting in increased per unit costs.

The Figure Given Below Shows Three Short Run Average Total