Managerial Economics - Cost Analysis
Diseconomies Of Scale - Cost Analysis
Posted On :
Arises due to managerial problems. If the size of the business becomes too large, then it becomes difficult for management to control the organizational activities therefore diseconomies of scale arise.
Diseconomies
Of Scale:
Arises due to managerial problems. If the size of the business becomes too large, then it becomes difficult for management to control the organizational activities therefore diseconomies of scale arise.
1. Labour union: continuous labour problem and dissatisfaction can lead to diseconomies of scale.
2. Poor team work: Poor performance of the team leads to diseconomies of scale.
3. Lack of co-ordination: lack of coordination among the work force has a major role to play in causing diseconomies of scale.
4. Difficulty in fund raising: difficulties in fund raising reduce the scale of operation.
5. Difficulty in decision making: the managerial inability, delay in decision making is also a factor that determines the economies of scale.
6. Scarcity of Resources: raw material availability determines the purchase and price. Therefore there is a possibility of facing diseconomies in firms.
7. Increased risk: growing risk factors can cause diseconomies of scale in an organization. It is essential to reduce the same.
Arises due to managerial problems. If the size of the business becomes too large, then it becomes difficult for management to control the organizational activities therefore diseconomies of scale arise.
Factors Causing Diseconomies Of Scale:
1. Labour union: continuous labour problem and dissatisfaction can lead to diseconomies of scale.
2. Poor team work: Poor performance of the team leads to diseconomies of scale.
3. Lack of co-ordination: lack of coordination among the work force has a major role to play in causing diseconomies of scale.
4. Difficulty in fund raising: difficulties in fund raising reduce the scale of operation.
5. Difficulty in decision making: the managerial inability, delay in decision making is also a factor that determines the economies of scale.
6. Scarcity of Resources: raw material availability determines the purchase and price. Therefore there is a possibility of facing diseconomies in firms.
7. Increased risk: growing risk factors can cause diseconomies of scale in an organization. It is essential to reduce the same.
Tags : Managerial Economics - Cost Analysis
Last 30 days 941 views
