Dis economies of scale are the forces that cause larger firms and governments to produce goods and services at increased per-unit costs. The concept is the opposite of economies of scale. The rising part of the long-run average cost curve illustrates the effect of dis economies of scale. Beyond Q1 (Ideal firm size), additional production will increase per-unit costs. economies of scale are the cost advantages that enterprises obtain due to size, with cost per unit of output generally decreasing with increasing scale as fixed costs are spread out over more units of output. Often operational efficiency is also greater with increasing scale, leading to lower variable cost as well.
Posted on: Tue, 09 Jul 2013 16:25:30 +0000
Trending Topics
Recently Viewed Topics
© 2015