diseconomies of scale

Popular Terms
Increase in long-term average cost of production as the scale of operations increases beyond a certain level. This anomaly may be caused by factors such as (1) over-crowding where men and machines get in each other's way, (2) greater wastage due to lack of coordination, or (3) a mismatch between the optimum outputs of different operations. See also economies of scale.

Use 'diseconomies of scale' in a Sentence

The diseconomies of scale were reason enough to suggest we exit the industry so we passed on our recommendation to senior management.
18 people found this helpful
You may have to raise the price on your product if the diseconomies of scale gets out of hand and is costing to much.
16 people found this helpful
Your customers may not like it but you may have no choice but to raise prices if there is a diseconomies of scale.
14 people found this helpful




Email Print Embed

Mentioned in These Terms