Question

Which of the following is not a cause of internal diseconomies of scale ?
1 Lack of staff morale and motivation
2 Less control, direction and coordination of human
resources

3Poor communication between different
4Late deliveries due to congestions in busy
departments
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Answer 1

Answer:

hi

good morning have a nice day

Answer 2

Late delivery due to congestion in the busy departments is not a cause of internal diseconomies of scale.

• Internal diseconomies of scale are the basic economy that occurs due to internal difficulties within the organization.
• They are the factors that raise the cost of production of an organization.
• Lack of staff morale and motivation would decrease the efficiency of the employees and would increase the cost of production.
• Less control direction and coordination of Human Resources would also increase the cost of production. Poor communication between different departments is also because of internal diseconomies of scale.