BUSINESS ADMINISTRATION
BUSINESS ECONOMICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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similar businesses in the area
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easy access to suppliers
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greater distance between senior staff and shop floor workers
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abundance of skilled labour
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Detailed explanation-1: -An overcrowding effect within an organization is often the leading cause of diseconomies of scale.
Detailed explanation-2: -Causes of Diseconomies of Scale. Diseconomies of scale may result from several factors, including communication breakdown, lack of motivation, lack of coordination, and loss of focus by the management and employees.
Detailed explanation-3: -There are internal types of diseconomies of scale, like technical, organizational and financial diseconomies, and external diseconomies of scale, like infrastructure.
Detailed explanation-4: -Problems With Diseconomies of Scale It reduces effective communication in a company or business. It creates a leg between operations and the level of outputs. It causes a decline in motivation of employees, this is because they feel they are not doing enough or are less-valued and thereby become demotivated.