Question

Give the term for the following statements.. :businesses do not maximise output from the given input​

Answer 1

Answer:

Diseconomies of scale

Explanation:

When businesses do not maximise output from the given input is to be termed as Diseconomies of Scale.

In Diseconomies of Scale, firms incur losses due to various factors and  not able to provide maximisation of output.

The various factor which creates diseconomies of scale as:

1. When the size of the operation firm increases, the span of control becomes large, and thereby the employer-employee relation are adversely affected leading to increase in the cost of production

2. When the output is taken on a large scale after a given point, the break down rate may increase the cost of production.

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