Answer to Question #117195 in Economics for Progress

Question

Which is an internal diseconomy of scale? *

A a lack of communication in a firm
B a reduction of cost by buying in bulk
C a shortage of skilled labour in an area
D traffic congestion in a particular area

Answer 1

Internal diseconomies imply to all factors which raise the cost of production of a particular firm. Internal diseconomy of scale is a lack of communication in a firm.

So, the correct answer is A.