Fisheries Economics

4.2.7. External diseconomies

When a firm expands its production, it may cause some diseconomies which may not affect it but may affect others. Hence, they are known as external diseconomies. A fish processing factory, for example, may discharge its waste waters into an estuary or backwater which may pollute it. If water from such a source is used for aquaculture, the fish farms may suffer from fish diseases and consequent loss.