Diseconomies of Scale

0.0(0)
studied byStudied by 0 people
learnLearn
examPractice Test
spaced repetitionSpaced Repetition
heart puzzleMatch
flashcardsFlashcards
Card Sorting

1/7

encourage image

There's no tags or description

Looks like no tags are added yet.

Study Analytics
Name
Mastery
Learn
Test
Matching
Spaced

No study sessions yet.

8 Terms

1
New cards

External diseconomies of scale (List)

Material price is likely to increase
Local supply shortage

2
New cards

Internal Diseconomies of Scale (List)

(We Can Climb Trees)
Waste/Loss , Communication , Control/Coordination, Tribalism

3
New cards

Waste/ Loss

Waste/Loss increases as it becomes harder to track stock when there is much more of it

4
New cards

Communication

Communication worsens between levels of authority in a firm as number of levels increases as it takes longer to pass information up and down levels

5
New cards

Control

Control/Coordination becomes harder for managers as there is more people per manager

6
New cards

Tribalism

them vs us - departments prioritise themselves over business

7
New cards

External diseconomies of scale (definition)

Factors that increase the average cost of production for a firm as a result of market growth

8
New cards

Internal Diseconomies of Scale (definition)

Factors that increase the AC of production as a result of internal firm growth