Question

5, According to the author, diseconomies of scale result when companies become so large that their cost savings are outweighed by the cost of

Answer 1

Diseconomies of scale occur when companies become too large, resulting in higher average costs and inefficiencies in production.

Step-by-step explanation:

Diseconomies of scale occur when companies become so large that their cost savings are outweighed by the costs of managing the large organization. This can result from difficulties in communication and coordination between multiple layers of management and workers. The result is higher average costs and inefficiencies in production.