A large firm may experience diseconomies of scale if there is

Assessment: WAEC SSCE - Economics - 2020 (Objective) Subject: Economics

Question 1 Report

A large firm may experience diseconomies of scale if there is 

Answer Details
A large firm may experience diseconomies of scale if there is difficulty in coordinating decisions. This means that as a company grows and becomes larger, it may become harder for the management to make decisions that will benefit the entire company as a whole. This can happen because there are more people involved in the decision-making process, and it may be difficult to get everyone on the same page. Additionally, as a company grows, it may become more difficult to communicate effectively with everyone in the organization, leading to a breakdown in coordination and increased inefficiencies.

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