Question

define 'diseconomies of scale' and explain two problems that a firm might face because of this.​

Answer 1

Answer:

Diseconomies of scale happen when a company or business grows so large that the costs per unit increase. ... With this principle, rather than experiencing continued decreasing costs and increasing output, a firm sees an increase in costs when output is increased.

Answer 2

Answer:

Diseconomies of scale happen when a company or business grows so large that the costs per unit increase. It takes place when economies of scale no longer function for a firm. With this principle, rather than experiencing continued decreasing costs and increasing output, a firm sees an increase in costs when output is increased.

two problems that a firm might face because of this are:

• Higher Costs of Resources. ...
• Greater Levels of debt and interest.

Hope it helps