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diseconomies of scale

   Also found in: Financial, Wikipedia 0.03 sec.

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 their average costs.
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4) Another advantage of the IT progress may come from reduction of managerial diseconomies of scale.
The role of information technology in the profit and cost efficiency ... by Kozak, Sylwester J. / Journal of Academy of Business and Economics
Diseconomies of scale exist when output increases and average cost increases as well.
The cost function and scale economies in academic research libraries. ... by Liu, Lewis G. / Library Trends
Tree-farm constraints include a lack of liquidity associated with long-term timber management, an exceptional degree of risk, and diseconomies of scale.
Taxing the Tree Farm: Sensible Policies for Sensible Private Forestry by Burnett, Howard / American Forests
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