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diseconomies of scale

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diseconomies of scale

Increase in the average cost of production as output increases in the long run. Diseconomies of scale are said to arise because larger businesses find it more difficult to manage their resources, particularly their workers, than small firms. For example, a large firm may employ too many managers, which pushes up its average costs.



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The diseconomies of scale which accompany large corporate farms are neither economic nor ecological.
In most markets, diseconomies of scale are present beyond a certain level of output.
This particular study focuses on the effects of production on emissions in order to assess whether firms face economies and/or diseconomies of scale with respect to pollution control.
 
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