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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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Taking on huge debt can trigger a diseconomy of scale and lead to economic ruin for small producers.
One possible explanation of this apparent anomaly is that the increasing economies of scope observed in public IHEs between undergraduate education and research and graduate education overwhelm the product-specific diseconomy of scale.
A diseconomy of scale became apparent when I analyzed data from the American Hospital Association's 1982 Guide to Hospitals.
 
 
 
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