Business, Legal & Accounting Glossary
Diseconomies of scale are the opposite of economies of scale. At a certain point, more inputs, for example, overcrowding of a hotel, could create lower returns.
The chart on the right shows where diseconomies of scale result due to bureaucracy, non-value-added services, strategic inertia, and more.
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This glossary post was last updated: 28th March, 2020 | 2 Views.