Causes for diseconomies of scale, Managerial Economics

Assignment Help:

Q. Causes for diseconomies of scale?

The most significant cause for diseconomies of scale is the diminishing returns to management. As the output grows beyond certain level the top management becomes overburdened, it becomes less efficient as coordinator and ultimate decision maker. So increase in the size of the plant beyond a certain large size makes managerial structure more complex and decreases the overall efficiency of the management.

Another cause for diseconomies of scale can be the exhaustible natural resources.

For example: increasing the fishing fleet may not cause an increase in catching of the fish.


Related Discussions:- Causes for diseconomies of scale

Factors influencing exchange rates, Factors influencing Exchange Rates ...

Factors influencing Exchange Rates i.  Inflation:   Other things being equal, a country experiencing a high rate of inflation will experience a lower demand for its goods whil

Costing, Ask quesCase Study Electron Control, Inc., sells voltage regulato...

Ask quesCase Study Electron Control, Inc., sells voltage regulators to other manufacturers, who then customize and distribute the products to quality assurance labs for their sens

Presentation, to give presentation on the topic: shutdown and abandoned cos...

to give presentation on the topic: shutdown and abandoned cost analysis?

Advertising budget, Analyse The Method By Which a Firm Can Allocate The Giv...

Analyse The Method By Which a Firm Can Allocate The Given Advertising Budget Between Different Media Of Advertisement

GDP, real GDP is increasingly criticized for its alleged failure to adequat...

real GDP is increasingly criticized for its alleged failure to adequately measure the standard of living. To what extent do you think this criticism is valid?

Define the natural monopoly, Q. Define the Natural Monopoly? Natural M...

Q. Define the Natural Monopoly? Natural Monopoly: Natural monopoly is because of natural factors. For illustration, a particular raw material is concentrated at a specific pl

Compensatory financing, Compensatory Financing Two other schemes for a...

Compensatory Financing Two other schemes for alleviating the effects of commodity trade instability have been operating for a number of years.  These are the IMF's Compensator

What are the methods of managerial economics, What are the Methods of Manag...

What are the Methods of Managerial Economics The process of managerial economics deals with aspects of economics and tools of analysis, which are employed by business enterpri

Illustrate about demand theory, Illustrate about Demand theory Demand t...

Illustrate about Demand theory Demand theory is one of the core theories of consumer behaviour andmicroeconomics. It attempts at answering questions regarding the magnitude of

Williamsons model of Managerial Discretion., Case studies and research pape...

Case studies and research papers on williamsons model of managerial discretion

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd