there are difficulties in coordinating production
there is shortage in labour supply
the size of market is small
there is an increase in the price of raw materials
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Discussions (4)
@Damz, exactly.. If a small firm has a good coordination during production, that firm would enjoy managerial economies of scale.. But if it has an improper coordination during production, they would be a loss leading to wastage and inefficiency..! Therefore A becomes our answer.
I disagree with ur answer 'cos diseconomies has more 2 do with inability 2 cordinate than size of market.
If a small firm has a good coordination during production, that firm would enjoy managerial economies of scale.. But if it has an improper coordination during production, they would be a loss leading to wastage and inefficiency..! Therefore A becomes our answer.
