4.2.6. Internal diseconomies of scale

4.2.6. Internal diseconomies of scale

When production is expanded continuously after a certain point, increase in production is less than proportionate than increase in factors of production. This is due to internal diseconomies of scale. Limitations on the availability of factors of production, problems in management and technical factors cause the internal diseconomies of scale.

Last modified: Wednesday, 21 December 2011, 11:30 AM