Diseconomies Of Scale

Pronunciation: /daɪs.ɪˈkɒn.ə.miz əv skeɪl/

Definitions of diseconomies of scale

noun a situation in which the cost of producing each unit of a good or service increases as a company grows larger and its production capacity expands

Example Sentences

A1 Diseconomies of scale can occur when a company grows too quickly.

A2 As the company expanded, they started to experience diseconomies of scale.

B1 The manager noticed that the inefficiencies in production were due to diseconomies of scale.

B2 The company had to reevaluate their operations to address the diseconomies of scale they were facing.

C1 The board of directors discussed strategies to mitigate the diseconomies of scale affecting the company.

C2 The CEO implemented new policies to combat the diseconomies of scale that were hindering the company's growth.

Examples of diseconomies of scale in a Sentence

formal The company experienced diseconomies of scale when its production costs increased as it expanded.

informal When the business got bigger, it started spending more money than before due to diseconomies of scale.

slang As the company grew, it started losing money because of diseconomies of scale.

figurative Like a balloon being inflated too much, the company faced diseconomies of scale as it expanded beyond its optimal size.

Grammatical Forms of diseconomies of scale

• plural: diseconomies of scale
• comparative: more diseconomies of scale
• superlative: most diseconomies of scale
• present tense: experiencing diseconomies of scale
• future tense: will experience diseconomies of scale
• perfect tense: have experienced diseconomies of scale
• continuous tense: are experiencing diseconomies of scale
• singular: diseconomy of scale
• positive degree: diseconomies of scale
• infinitive: to experience diseconomies of scale
• gerund: experiencing diseconomies of scale
• participle: experienced diseconomies of scale

Origin and Evolution of diseconomies of scale

First Known Use: 1930 year

Language of Origin: English

Story behind the word: The term 'diseconomies of scale' originated from the field of economics to describe the situation where a firm experiences an increase in average costs as it grows beyond a certain size.

Evolution of the word: Initially, the concept of diseconomies of scale was used to highlight the inefficiencies that can arise in large organizations due to factors such as communication breakdowns, bureaucracy, and coordination issues. Over time, the term has been widely adopted in economics literature to explain the phenomenon of rising average costs with increased production levels.