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Edexcel IGCSE Business Studies 5.1.2 Diseconomies of Scale Questions

Practise diseconomies of scale by defining rising average costs and explaining why larger businesses may become harder to manage.

Syllabus
First assessment 2019
Course
Business Studies 4BS1

Exam points

  • Define diseconomies of scale as average costs rising as the business grows.
  • Explain growth limits such as poor communication, coordination issues or lower control.

Edexcel IGCSE Business Studies 5.1.2 Diseconomies of Scale Questions question 1

[Maximum number: 1]

The Better Toy Store (TBTS) is a children's toy shop. TBTS has three shops in Singapore. Two of the shops are located in busy shopping malls and the third is located at the Jewel Changi Airport. TBTS has a website for customers looking to buy toys online.

TBTS selects toys to sell that are excellent for play, value, design and quality. All TBTS toys are environmentally friendly.

Define the term diseconomies of scale.

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