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Question

When a firm grows so large that it becomes very difficult to manage, it is called:
  1. Diseconomies of scale.
  2. Economies of scale.
  3. External economies.
  4. Internal economies.

A
Economies of scale.
B
Diseconomies of scale.
C
External economies.
D
Internal economies.
Solution
Verified by Toppr

The correct option is A Diseconomies of scale.
Diseconomies refer to something which is economically not manageable and occurs loss for the business.
Hence, option A is correct.

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