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...Economies and diseconomies of scale firms can reduce their average costs in the long run by increasing production this means amount fixed factors land buildings machines as well variable labour materials suppose for instance that a factory currently produces widgets week at total cost atc is therefore per unit if it moves to bigger using faster produce now only firm experiencing internal these are reductions be achieved an individual increases likely beyond certain size will occur causing rise generally result management problems when company becomes too big particular very large suffer from communication there many layers spread across different parts problem worse over locations possibly more than one country poor bad decisions make business slow react changing conditions morale motivation sometimes low organisations workers feel remote managers who affect them inefficient may go unnoticed companies whereas small usually obvious employee not contributing much sources technical afford...