Meaning of diseconomies of scale | Babel Free

Definitions

The characteristics that lead to an increase in average costs as a firm grows beyond a certain size.

plural, plural-only

Examples

“In its application, the company cited “diseconomies of scale,” inflation and the diversion of normal traffic by Laker's Skytrain as reasons for seeking the increases.”

“Growth at traditional organizations eventually hits a point beyond which the firm will “suffer from diseconomies of scale, scope and learning.” By contrast, “algorithm-driven operating models” of the A.I. economy are “almost infinitely scalable.””

“The capital costs involved in creating such an infrastructure are significant and some of the fixed costs can be diluted as output expands, but there may be some important diseconomies of scale in managing the infrastructure.”

CEFR level