ECONOMICS (CBSE/UGC NET)

ECONOMICS

TECHNOLOGY

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
Internal diseconomies of scale can be caused by
A
Being unable to purchase stocks at a discounted price
B
Management control being weakened with a larger workforce
C
Traffic congestion causing delays to delivery of important stocks
D
Advertising costs to a global audience
Explanation: 

Detailed explanation-1: -Internal diseconomies of scale can arise from technical issues of production or organizational issues within the structure of a firm or industry. External diseconomies of scale can arise due to constraints imposed by the environment within which a firm or industry operates.

Detailed explanation-2: -Internal Diseconomies of Scale: Internal Diseconomies of Scale are the Diseconomies resulting from the internal difficulties within the organisation. The Internal Diseconomies are the factors that raise the cost of production of an organisation like lack of supervision, lack of management and technical difficulties.

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: -Late delivery due to congestion in the busy departments is not a cause of internal diseconomies of scale. Internal diseconomies of scale are the basic economy that occurs due to internal difficulties within the organization. They are the factors that raise the cost of production of an organization.

There is 1 question to complete.