--%>
Assignment Help - homework help

Diseconomies of Scale

Diseconomies of Scale:

The diseconomies are the drawbacks occurring to a firm or a group of firms due to big scale production.

Internal Diseconomies of Scale:

When a firm continues to grow and develops beyond the optimum capacity, the economies of scale fade away and diseconomies will begin operating. For illustration, when the size of a firm rises, after a point the difficulty of management occurs to that specific firm that will raise the average cost of production of that firm. This is termed as internal diseconomies of scale.

External Diseconomies of Scale:

Beyond a certain phase, too much localization and concentration of industries will generate diseconomies in production that will be common for all firms in a locality. For illustration, the expansion of an industry in a particular region leads to high rents and costs. These are the external diseconomies as this affects all the firms in the industry situated in that specific area

   Related Questions in Microeconomics

  • Q : Definition of Collective Bargaining The

    The procedure in which employers and unions agree to labor contracts which govern work arrangements is termed as: (i) Arbitration. (ii) Codependency. (iii) Bilateral monopoly. (iv) Joint profit maximization. (v) Collective bargaining.

    Q : Profits and Losses in firms Of all the

    Of all the profits made by the U.S. firms, corporations account for regarding: (1) Less than 10 percent. (2) Between 10 percent and 20 percent. (3) Between 20 percent and 40 percent. (4) More than 40 percent. Can someone please hel

    		•
  • Q : Price elasticity of supply problem The

    The price elasticity of supply generally evaluates the ratio of relative: (i) Gain to the amounts firms supply at different prices. (ii) Price increase need to induce a firm to raise output. (iii) Change in the quantity supplied to a associative chang

    		•
  • Q : What supply curve illustrates What

    What supply curve illustrates?

    		•
  • Q : Absolute value of the proportional

    The absolute value of proportional change within labor hired divided through a proportional change within the wage rate is termed as the: (w) income/substitution coefficient. (x) employment wage response. (y) labor force participation rate. (z) elasti

    		•
  • Q : Average standard of living in Africa

    Elucidate briefly the average standard of living in Africa?

    		•
  • Q : Freedom of entry-exit in long run

    Contestable markets and purely competitive markets share the feature of: (w) collusive behavior of huge firms. (x) freedom of entry and exit into the long run. (y) widespread product differentiation. (z) persistent economic profits.

    Q : Labor Union-union membership The basic

    The basic idea that unions are more influential than ever before is: (i) Supported by the consequences of unions on inflationary spirals. (ii) Reflected in the growing numbers of violent and expensive strikes. (iii) Contrary to the fact that union membership is refusi

    		•
  • Q : Screening-derived demand Can someone

    Can someone please help me in finding out the accurate answer from the following question. Boris, who functions a local landscaping company, needs each of the potential employee to lift a 200 pound tree before being hired full-time. This need is an illustration of: (1

    		•
  • Q : Why demand curve is more elastic Why

    Why demand curve is more elastic under monopolistic competition as compare to monopoly.

    		•