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Hello sir Can you please define diseconmies of scale and Can you please give me 1 or 2 examples of 1) technical diseconmies 2) managerial diseconmies Other than the one mentioned in videos As i am little bit confused regarding these Concepts


Santosh pal

Santosh pal

CA Foundation

805

04-May-21 17:17

52

Answers (13)

Best Answer

In the pdf notes only economies of scale has been explained But diseconmies of scale was not explained (except for the risk bearing point , but i didnt understood that point as well), so can u please elaborate the point that i have underlined in the image... And please give examples for managerial, commercial, and financial diseconmies(as u have already given example for technical economies)

1. Increased cost of management is often transferred to the company products and is likely to cause an increase in the price of goods and services offered by the company. This is treated as managerial diseconomies of scale. 2. If organization changes its long lasting supplier who gives more discounts , it result in less discounts from the new supplier. This is commercial diseconomy. 3. If organization borrows money with high interest rate, it is again considered as financial diseconomy.


Yoga Vishnu

Yoga Vishnu

Moderator

2 days ago

Mainly regarding technical diseconmies..


Santosh pal

Santosh pal

CA Foundation

805

04-May-21 17:33

Mainly regarding technical diseconmies..

Technical diseconomies occur during the production process. For example, an organisation may hire many employees which leads to poor staff morale, and staff getting in each otherâ??s way. In simple words, technical diseconomies of scale can happen when a firm grows quicker than it is able to adapt


Yoga Vishnu

Yoga Vishnu

Moderator

04-May-21 17:50

Can u once define diseconmies of scale..

Keeping it simple, diseconomies of scale means the average cost is increasing with increase in output. It is a kind of disadvantage to the organisation.


Yoga Vishnu

Yoga Vishnu

Moderator

04-May-21 17:57

Can u once define diseconmies of scale..

And also please give examples for manegerial, commercial, financial,risk Bearing diseconmies (I have understood economies but i didnt understand the diseconmies So can u please give example for each one of them other than the one mentioned in videos)(sorry for the inconvenience but i didnt understand them properly even after watching the videos twice)


Santosh pal

Santosh pal

CA Foundation

805

04-May-21 17:58

Can u Please give examples for these also...

You can go through notes PDF in free resources which have more explanation


Yoga Vishnu

Yoga Vishnu

Moderator

2 days ago

You can go through notes PDF in free resources which have more explanation

In the pdf notes only economies of scale has been explained But diseconmies of scale was not explained (except for the risk bearing point , but i didnt understood that point as well), so can u please elaborate the point that i have underlined in the image... And please give examples for managerial, commercial, and financial diseconmies(as u have already given example for technical economies)

Attachments

IMG_20210505_112735.jpg


Santosh pal

Santosh pal

CA Foundation

805

2 days ago

Risk some times may work adversely which leads to diseconomies

Ok sir Thank you :)


Santosh pal

Santosh pal

CA Foundation

805

2 days ago

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