Question
The simple and effective solution to diseconomies of scale at the plant level is a. dumping...
The simple and effective solution to diseconomies of scale at the plant level is a. dumping b.price discrimination c. using multiple plants d. shuting down e. produce at sub-MOS Оа Ob Ос Od Oe
Answers
Ans- c
Diaeconomies of scale occurs when there is Increase in average cost with the increase in output in long run. It is generally occurs due to increase in the size of plant and inefficient management. So that splitting the plant into multiple manageable units/plants is one among the effective solution to manage diaeconomies of scale. Splitting the plant into multiple plants create space to the specialisation of work and increase the efficiency and sound management so that the diaeconomies of scale will be vanished.
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