APT Initiatives
APT Business & Economics Resources
Minimising Workloads, Maximising Performance
Established in 1999

Special Items

Diseconomies of scale

Factors that cause unit costs to rise as a business increases its output / size and scale of operations. These arise from a number of reasons, most of which concern the problems of managing large businesses. They are more likely to result when expansion is rapid and appropriate systems are unable to be developed in time to cope with growth. They concern problems with communication, coordination and control, motivation, as well as technical problems.

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