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A reading service for the visually impaired requires each reader applicant to prepare and submit a one-hour interview tape of material chosen by the service to determine whether the reader has pleasing vocal characteristics and is accent-free so that it is not necessary to use the same reader every time.The reading service is trying to limit problems associated with the service characteristic of:
Diseconomies of Scale
A situation where a business grows so large that the costs per unit increase. It occurs when economies of scale no longer function for a firm.
Production Function
An equation or model that describes the relationship between inputs used in production and the output produced.
Diminishing Returns
The principle stating that if one factor of production is increased while others remain constant, the overall returns will incrementally decrease after a certain point, leading to reduced efficiency.
Decreasing Returns to Scale
A situation in which a proportional increase in all inputs results in a less-than-proportional increase in output.
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