Question

what is meant by diseconomies of scale?

Answer 1

diseconomies of scale: 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.

Answer 2

Answer:

Diseconomies of scale happen when a company or business grows so large that the costs per unit increase. With this principle, rather than experiencing continued decreasing costs and increasing output, a firm sees an increase in costs when output is increased.

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