The main source of diseconomies of scale is
A) dimensional factors associated with many physical relationships.
B) specialization of labor.
C) limits to the efficient functioning of management.
D) improvements in production technology.

Question

Quizplus · Accepted Answer

The main source of diseconomies of scale is limits to the efficient functioning of management. As a company grows larger and more complex, it becomes increasingly difficult to manage and coordinate all of the different parts of the organization. This can lead to communication breakdowns, duplication of efforts, and other inefficiencies that can actually raise costs per unit of output.

The Main Source of Diseconomies of Scale Is