Definition of diseconomy in English:



  • An economic disadvantage such as an increase in cost arising from an increase in the size of an organization.

    ‘in an ideal world, these diseconomies of scale would be minimized’
    • ‘When a market gets too big, diseconomies of coordination can prevail over economies of scale.’
    • ‘For large output levels, diseconomies of scale predominate, average cost rises as output rises, and the average cost curve exhibits diseconomies of scale.’
    • ‘Indeed, there may be diseconomies of scale associated with being too large.’
    • ‘Indeed, to locate a firm on the periphery of a major metropolitan region is a way both to benefit from agglomeration economies and to reduce the diseconomies of central location.’
    • ‘It is upon this forecast that their calculations of economies, or diseconomies, of scope are based.’
    • ‘Forcing pupils to change school would result in huge diseconomies, which would dramatically alter cost-per-pupil ratios in the non-denominational schools.’
    • ‘According to the bulletin quoted above, large hospitals show diseconomies of scale.’
    • ‘The analysis examined the contribution of the expected external diseconomy variables of one firm on the cost function of the other firm.’
    • ‘It is argued in the road pricing literature that rural roads are subject to decreasing long-run average costs while urban roads experience diseconomies of scale.’
    • ‘In an information and distribution-intensive industry with high fixed costs such as banking, there is ample potential for economies of scale, as well as potential for diseconomies of scale.’
    • ‘It seemed that there might sometimes be diseconomies of scale.’
    • ‘This can actually increase average costs resulting in diseconomies of scale.’
    • ‘Despite the apparent attractions, however, diseconomies of scale can easily put the firm at a disadvantage by making it too big and unmanageable.’
    • ‘Because economic rationality recognises exchange-value only, these diseconomies become visible only when the deficit is translated into a form which simultaneously masquerades as wealth: economic demand.’
    • ‘Providing the capacity and durability together results in diseconomies of scope that offset the economies of scale in provision of capacity and durability.’
    • ‘Of course, diseconomies also existed, particularly as the city's economy boomed and both population and traffic increased.’
    • ‘Benefits of these sorts are identifiable more generally as agglomeration economies, although in certain cases, agglomeration diseconomies can also appear as regions grow in size.’
    • ‘The corresponding total cost functions can be graphed, displaying the regions of economies and diseconomies of scale.’
    • ‘The actual regional growth rates will therefore depend on the extent to which agglomeration economies or diseconomies are operative.’
    • ‘This is, if you will, an inherent diseconomy of small-scale science.’