What are diseconomies of scale? for long run average cost curve

Answers

Diseconomies of scale are the effects of a company growing too large and inefficient, where the costs start to outweigh the benefits of increased production. Diseconomies of scale occur when the average-cost curve of a company increases at higher rates of production. This increase in average costs can be attributed to rising fixed costs, managerial inefficiencies, problems rousing new capital, increased difficulty in coordination and control as the company expands, and, in extreme cases, a saturation of the market.

Answered by Hannah

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