Diseconomies of scale
What Diseconomies of scale means in Economics A-Level, as defined for AQA.
Definitions of Diseconomies of scale
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Reference: AQA
Internal inefficiencies such as communication breakdowns or coordination issues that cause average costs to rise as a firm expands beyond its optimal size.
Occur when a firm expands its scale of production beyond the minimum efficient scale, causing long-run average costs to rise.
The financial relationship between output and long-run average cost, causing LRAC to rise.
Topics that use Diseconomies of scale
- Economies and diseconomies of scale (AQA A-Level)
Related terms
- Alienation
- Economies of scale
- Empirical evidence
- External economies of scale
- Internal economies of scale
- Long-run average cost (LRAC) curve
- Market structure
- Minimum efficient scale
Using Diseconomies of scale in the exam
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