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Law of Diminishing Returns
The economic principle stating that as one input variable is increased, there is a point at which the marginal gain in output begins to decrease, holding all other inputs constant.
Diseconomies of Scale
Diseconomies of scale occur when a firm's costs per unit increase as the scale of its output increases, often due to inefficiencies that arise from managing a larger organization.
Average Fixed Costs
Costs that do not change with the level of output and are spread over the units of output, thus decreasing per unit as production increases.
Output Increases
Output increases refer to a situation where there is a rise in the quantity of goods or services produced by a company or within an economy.
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