ECONOMICS (CBSE/UGC NET)

ECONOMICS

TECHNOLOGY

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
Which of the following is not a cause of internal diseconomies of scale?
A
Poor communication between different departments
B
Lack of staff morale and motivation
C
Less control, direction and coordination of human resources
D
Late deliveries due to congestion in busy locations
Explanation: 

Detailed explanation-1: -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.

Detailed explanation-2: -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-3: -Communication Breakdown. Communication is important in any organization, especially in managing economies of scale. Reduced Motivation. As the business grows, the employee base increases, which can make them feel isolated and thus less motivated. Lack of Coordination and Loss of Direction. 12-Dec-2022

Detailed explanation-4: -Poor communication. As the business expands communicating between different departments and along the chain of command becomes more difficult. Lack of motivation. Loss of direction and co-ordination. 22-Mar-2021

Detailed explanation-5: -Technical diseconomies of scale. Inefficiencies in the production process can cause technical diseconomies. Organizational diseconomies of scale. Purchasing diseconomies. Competitive diseconomies. Financial diseconomies. 22-Feb-2021

There is 1 question to complete.