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malfutka [58]
3 years ago
6

Livi owns and operates Livi's Love From Scratch cupcake bakery. Livi has 10 locations throughout her state. When Livi is produci

ng 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 experiencing
Business
1 answer:
hoa [83]3 years ago
4 0

Answer:

Diseconomies of Scale

Explanation:

On the contrary to economies of scale which save costs when production levels go up, diseconomies of scale make costs go higher when their is an increase in the size of the organization.

Livi's Love From Scratch cupcake bakery has increased in size to reach 10 locations and this has caused crowed areas and delays.

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