Question

When a firm grows so large that it becomes very difficult to manage, it is called:

• A. Diseconomies of scale.
• B. Economies of scale.
• C. External economies.
• D. Internal economies.

Answer 1

The correct option is A Diseconomies of scale.

Diseconomies refer to something which is economically not manageable and occurs loss for the business.

Hence, option A is correct.