Diseconomies of Scale

Diseconomies of Scale take place when a business produces goods in such a large scale that, as a result, more wastage or obsolescence will take place, which increases average cost.

Reasons for Diseconomies of Scale

• Poor relationship between employers and employees
• Delays in taking decisions or slow decision making process
• Lack of control or management in reference to their workers

Economies of Scale are discussed in detail in Rob Jones' Edexcel International GCSE Business Studies book.