What are diseconomies of scale?
What are diseconomies of scale?
Diseconomies of scale occur when expansion causes long-run average cost, or LRAC, to rise. They arise in the long run, when a firm can vary all factors of production.
Step-by-step lessons on CIE Intl A Level Economics 7.5.7 internal and external diseconomies of scale. Each one builds up to exam-style questions.