Definition: This situation happens when a firm average cost of production rises beyond a certain level of output expansion.
Types of Internal Diseconomies are discussed below
a) Price increase lag behind the cost increase
Attractive price of final commodities will hence increase competition among producers to raise their output and thus increase demand for scarce resources. This will result in the higher factor prices or the cost of production of the goods.
b) Complexity of management
Problems of the co-ordination, supervision and other encumbrances of the bureaucracy become extra intense as a firm expands. This will decrease the work efficiency and thus increase cost to the firm.
c) Lack of motivation
An employee in the large firm lack personal commitment since his contribution to the firm is relatively quite small. Thus he is not motivated to give his best as his effort can be fruitless.
Email based internal diseconomies assignment help - homework help at TutorsGlobe
Are you searching economics tutor for help with Internal Diseconomies questions? Internal Diseconomies topic is not easier to learn without external help? We at www.tutorsglobe.com offer finest service of economics homework help and economics homework help. Live tutors are available for 24x7 hours helping students in their Internal Diseconomies related problems. We provide step by step Internal Diseconomies question's answers with 100% plagiarism free content. We prepare quality content and notes for Internal Diseconomies topic under economics theory and study material. These are avail for subscribed users and they can get advantages anytime.
Why TutorsGlobe for homework help
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!