Concept:Diseconomies of scale occur when a firm grows so large that its average cost of production rises instead of falling.
Explanation:As a firm expands, it may become difficult to manage and coordinate all departments and activities efficiently.
This poor coordination leads to wastage, delays, and lower productivity.
As a result, the cost per unit of output increases.
Division of labour and employment of specialists usually improve efficiency and reduce costs, so they cause economies of scale, not diseconomies.
A decrease in the cost of production is also a sign of economies of scale.
Therefore, difficulty in coordinating decisions is the factor that can make a large firm experience diseconomies of scale.
Answer:A. difficulty in coordinating decisions