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Livi owns and operates Livi's Love From Scratch cupcake bakery. Livi has 10 locations throughout her state. When Livi is producing a high level of output, her production area becomes quite crowded with workers. Sometimes the workers have to wait to use a mixer or oven. Further, Livi sometimes cannot keep track of which locations are serving which cupcake flavors on specific days. Livi's production process is most likely experiencingGroup of answer choicesdeclining total output.

Sagot :

Anthougoidn

Livi's production process is most likely experiencing diseconomies of scale.

What are diseconomies of scale?

Diseconomies of scale occur when economies of scale are not functional for a firm.

The following factors can cause diseconomies of scale:

  • Communication barriers
  • Lack of motivation
  • Lack of coordination
  • Loss of focus by the management and employees
  • Operational bureaucracy.

Thus, Livi's production process is most likely experiencing diseconomies of scale.

Learn more about diseconomies of scale at https://brainly.com/question/15827092

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