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Diseconomies of Scale
Occur when a company or business grows so large that the costs per unit increase. It represents the negative counterpart to economies of scale.
Economies of Scale
The cost advantages that enterprises obtain due to their scale of operations, with cost per unit of output generally decreasing with increasing scale.
Economies of Scale
The price benefits that firms enjoy from the magnitude of their operations, where the cost of each output unit generally lessens as the scale of operations increases.
Unit Costs
The financial outlay for a company to manufacture, warehouse, and dispose of one unit of a specific item or service.
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