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Economics 101: Diseconomies Of Scale | SterlingTerrell.net

Economics 101: Diseconomies Of Scale


What are diseconomies of scale?

Diseconomies Of Scale is an increase in cost per unit as quantity produced increases.

Diseconomies of scale can result, for example, from increased transportation costs and the crowding impact seen in the decreasing impact of hiring more and more employees.

Obviously, diseconomies of scale is the opposite of economies of scale.