WAEC Economics 2020 Objective — Question 17
Question 17 of 50 from the West African Examinations Council (WAEC) Economics 2020 Objective paper, with the correct answer and a full explanation.
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A large firm may experience diseconomies of scale if there is
- A. difficulty in coordinating decisionsCorrect
- B. division of labour in production
- C. employment of more specialists
- D. decrease in the cost of production
Explanation
As a firm grows very large, coordination and communication become difficult, leading to inefficiencies (diseconomies of scale) despite increased size.
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