What is Diseconomies of scale?
{{no sources|date=January 2022}} Usually, when a [[business]] grows, it can produce more units, at a lower per-unit price. In economics, this is known as [[economies of scale]]. Unfortunately, this is only true up to a certain point. When the company grows beyond that point, producing [[Good (economics)|goods]] or [[Service (economics)|services]] gets more expensive again. This effect is known as '''diseconomies of scale'''. There are many causes for this effect: * The [[communication]] costs are larger in bigger [[Organization|organisations]]. It may also be more difficult to reach a given person. * With more employees, it is probable that two people will be doing the same thing. This is known as [[duplication of effort]]. * Larger companies have longer [[response]] times. * Sometimes people are afraid to change procedures that worked in a smaller company, but that need adapting to a bigger company. {{Stub}} [[Category:Microeconomics]]