Explain five diseconomies that may be suffered firms due to large scale production

  • Decision making take too long
  • Size of market may be too small
  • Complexity of the organisation may create difficulty in management
  • Lack of enthusiasm due to size which kills commitment- no personal contact
  • High risks due to change in fashion, taste or falling prices .
  • Formation of monopolies leading to exploitation of consumers
  • Poor staff and employee welfare are due to large number.



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