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From course:

Economics A Level (DONEEEEEEE)

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Question:

What is Internal Diseconomies of Scale?

Author: eric_galvao



Answer:

-Waste and Loss can go Up, even if Raw Materials are in Plentiful. Big Warehouses can create Confusion -Communication becomes Harder as the Firm Grows. -Managers can be able to Control less -Activities can become Hard to Coordinate which leads to Failure and Incidents -'Them and Us' Mindset in Workers of Different parts in a Big Firm. Workers puts their Department Interests First, before the Firms, which Lowers Efficiency and Cooperation.


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