Is there a term to describe industries where it is more expensive per unit tp produce a large number of product than it is to produce a small number?

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2026-03-20 06:00

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The term for industries where it is more expensive per unit to produce a large number of a product than it is to produce a small number is "diseconomies of scale." Firms with diseconomies of scale have a decrease in efficiency as they increase production. Businesses that do not require expensive technology, but require close personal supervision to be successful, may suffer an increase in the cost per item produced if they increase production past a certain point. In other Words, there is a "diseconomy" to increasing production.

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