ECONOMICS

Detailed explanation-1: -An overcrowding effect within an organization is often the leading cause of diseconomies of scale. This happens when a company grows too quickly, thinking that it can achieve economies of scale in perpetuity.

Detailed explanation-2: -Diseconomies of scale may result from several factors, including communication breakdown, lack of motivation, lack of coordination, and loss of focus by the management and employees.

Detailed explanation-3: -Diseconomies of scale occur when a business grows so large that the costs per unit increase. As output rises, it is not inevitable that unit costs will fall. Sometimes a business can get too big! Diseconomies of scale occur for several reasons, but all as a result of the difficulties of managing a larger workforce.

Detailed explanation-4: -Diseconomies of scale occur when production scales up past the point of efficiency and unit costs begin to rise instead of fall. In cases of diseconomies of scale, increases in production output generate a negative effect since marginal costs also increase.

Detailed explanation-5: -Economies of scale are cost advantages reaped by companies when production becomes efficient. Companies can achieve economies of scale by increasing production and lowering costs. This happens because costs are spread over a larger number of goods. Costs can be both fixed and variable.