noun
- factors that cause a company or organization to become less efficient and more costly as it grows larger
Usage: economics; business; plural form
Examples
- The company experienced diseconomies of scale when it expanded too rapidly.
- Poor communication between departments created diseconomies within the organization.
- Management overhead became a source of diseconomies as the firm grew larger.
- The factory suffered from diseconomies due to overcrowding and coordination problems.
- External diseconomies arose from increased traffic congestion around the industrial area.
- The merger resulted in unexpected diseconomies that reduced overall profitability.