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diseconomies business definition
- Inefficiencies and bottlenecks in manufacturing processes that cause unit costs to rise as output increases. A manufacturing plant may grow so large that it becomes difficult to manage and, as a result, less efficient. Compare economies of scale.
- Costs that are not borne directly by a manufacturer. For example, a coal-fired electric power plant may emit particulate matter and sulfur oxides that cause damage to vegetation and human health.
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