What is the difference between a managerial diseconomy of scale and X ineffiency???
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Difference between managerial diseconomy and X ineffiency watch
- Thread Starter
- 30-05-2016 15:21
- 30-05-2016 15:26
Managerial DoS is simply problems in communication and coordination as the firm gets too big, therefore LRAC increases.
X inefficiency is simply when a firm (usually in a monopoly) has little incentive to cut costs due to the lack of competition so actual AC is above potential AC i.e they arent maximising efficiency.