Business A-Level
Diseconomies of Scale
What Diseconomies of Scale means in Business A-Level, as defined for Pearson Edexcel.
Definition of Diseconomies of Scale
When a business grows so large that average unit costs begin to rise, often due to poor communication and coordination.
Topics that use Diseconomies of Scale
- Theme 3: Business decisions and strategy (Pearson Edexcel A-Level)
Related terms
- Economies of Scale
- Inorganic (External) Growth
- Market Penetration
- Organic (Internal) Growth
- Diversification
Using Diseconomies of Scale in the exam
Definition questions usually carry one or two marks, and examiners look for the precise wording. Write the definition from memory, check it against the version above, and then use the term in a longer answer on the same topic so it sticks.
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