Day: August 18, 2017

Economics Multiple Choice Question – 18 August 2017

Which ONE of the following is an example of an external diseconomy of scale?

Select ONE answer:

  1. Lower levels of motivation among workers
  2. Firms experiences loss of managerial direction
  3. Shortage of input factors for an entire industry
  4. Poorer communication with a larger workforce
  5. Higher levels of staff turnover in a business

Draw the representation of a ‘diseconomies of scale’?
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This is multiple choice question is suitable for Economics KS5 classes.

The answer is 3 – DEFINITION of ‘External Diseconomies Of Scale’ External factors beyond the control of a company increases its total costs, as output in the rest of the industry increases. The increase in costs can be associated with market prices increasing for some or all of the factors of production.

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