Diseconomies Of Scale
Diseconomies Of Scale Meaning:
Exists when producing n+1 units of a good or a service is more expensive than producing n units on an average per-unit basis.
Exists when producing n+1 units of a good or a service is more expensive than producing n units on an average per-unit basis.
Diseconomies of scale are commonly caused by such things as communications costs (more communication channels are required the more staff you have), management costs (more staff require more managers, who tend to be highly-paid) and longer response times to changes in the marketplace.