diseconomy


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Related to diseconomy: Diseconomies of scale

diseconomy

Economics disadvantage, such as lower efficiency or higher average costs, resulting from the scale on which an enterprise produces goods or services
References in periodicals archive ?
The results from this analysis indicate a diseconomy of scale in the provision of environmental services.
A number of known factors contribute to this diseconomy of scale, among them the greater organizational complexity in large hospitals, their more marked fluctuations in occupancy, and a heavier percentage of high-cost patients.
When these industries build-out their data networks today in rural areas, they often have a low density of users/sites serving a large territory and therefore a diseconomy of scale.
What the authors interpret as the problem of diverse tastes can equally well be seen as a diseconomy of scale--and, with an elastic demand, the result of a lower cost is higher, not lower, expenditure.
Other crops, touted as solutions to the apparent diseconomy of current methods, offer even worse results.
There is a tipping point where higher output results in higher production costs: a diseconomy of scale.
However, a terminal could not solve problems via expanding the scale as blind expansion would cause diseconomy which obliges the terminal to adopt new management strategies to be more competitive.
The main exception was the South, where segregation caused a diseconomy of scale that made the county the default school district and required greater state control to keep blacks out of local governance.
Such a requirement would have three desirable consequences: First, it would tend to make bank executives more conservative and less daring in gambling with other people's money; second, it would put this liability of financial decision makers ahead of any taxpayer "bailout" in case of insolvency; and third, it would create a potentially powerful diseconomy of scale within big conglomerate banks.
This choice may reflect more accurately the externalities that arise from certain types of service provision, such as promotional messages, and remove the implied scale diseconomy of service provision described above.
Conversely, the results also suggest that fishermen might be in a diseconomy of scale situation, which can be turned around by offering bigger boats or other productive technologies.
That long-term diseconomy is just one reason among many to abandon the scenario - unless, of course, you're a downtown landlord.