- Created by: Frances
- Created on: 27-05-13 17:32
Diseconomies of scale - Are caused by an increase in long run average costs beyond the point of the MES (minimum efficient scale).
Problems with communication - Large workforce may need extra costs to be incurred in making managers aware of what is going on.
Problems of coordination - Large firms have layers of management and several tiers of decision making, which can sometimes hinder change.