Problems like difficulties in management, lack of supervision, higher input cost, etc. due to large scale production leads toChoose one optiondiseconomies of scaleeconomicseconomies of scalereal economies of scale
Question
Problems like difficulties in management, lack of supervision, higher input cost, etc. due to large scale production leads toChoose one optiondiseconomies of scaleeconomicseconomies of scalereal economies of scale
Solution
The correct answer is "diseconomies of scale".
Step 1: Understand the question. The question is asking about the problems that arise due to large scale production such as difficulties in management, lack of supervision, and higher input cost.
Step 2: Understand the options. The options given are "diseconomies of scale", "economics", "economies of scale", and "real economies of scale".
Step 3: Choose the correct option. "Diseconomies of scale" is a term in economics that refers to a situation where the cost per unit increases as the quantity of output increases. This is due to the problems mentioned in the question like difficulties in management, lack of supervision, and higher input cost. Therefore, the correct answer is "diseconomies of scale".
Similar Questions
The economies of scale is determined through
When a firm gets so large that the coordination and management of workers and other inputs become costly and difficult, it is experiencing which of the following?Group of answer choicesDiseconomies of scaleDiminishing marginal productEconomies of scaleEconomies of scope
What is an advantage of economies of scale?
Which of the following is not a reason for diseconomies of scale?Coordination difficultiesIncreased bargaining power with suppliersIncreased complexity of managementProblems with communication
Economies of scale arise from which of the following sources? Select one: a. Serving domestic and international markets from the same production facilities b. Serving only domestic markets c. Increasing fixed costs by limiting them to small volumes d. Bargaining with distributors to drive up the product costs
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