Déconomies
Déconomies is a term used to describe the opposite of economies of scale. While economies of scale occur when the cost per unit of output decreases as the scale of production increases, déconomies of scale happen when the cost per unit of output increases as the scale of production increases beyond a certain point. This phenomenon is also sometimes referred to as diseconomies of scale.
Several factors can contribute to déconomies of scale. As an organization grows larger, communication and coordination
Furthermore, large-scale operations can face logistical challenges. Transportation of raw materials and finished goods over greater