Diseconomies of scale happen when a company or business grows so large that the costs per unit increase. It takes place when economies of scale no longer function for a firm. With this principle ...

Will Kenton is an expert on the economy and investing laws and regulations. He previously held senior editorial roles at Investopedia and Kapitall Wire and holds a MA in Economics from The New ...

Growth does not always promote efficiency. While economies of scale lead to cost savings as production increases, ...

Diseconomies of scale can be caused by problems with communication as the firm expands possibly into different locations or internationally. Decisions take longer to reach all employees because ...