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 diseconomy of scale in the innovation process creates problems for the large pharmaceutical companies to fill the holes in their portfolio of drugs when the drugs run out of proprietary.
Robert Fogel's Without Consent or Contract attributed the demise of American slavery not to its diseconomy but to a religiously-inspired vision that made slavery morally insupportable.
Evidence substantiated a diseconomy of scale function, as costs increased steadily with agency size.
When one industry creates costs that must be shared by all others, the useful science of economics calls it an "external diseconomy.
When there is insufficient income or demand to satisfy a proper return to the land and return on and recapture of the improvements, a diseconomy is present, and external obsolescence exists.
Collaborative research may have different effects upon different parties: what one party achieves as a scale economy, anther may suffer as a scale diseconomy.
Beyond that, there is a diseconomy because another layer of management must be added to support the staff needed to service the loans.
The diseconomy of scope identified here is scale-dependent: in particular, it diminishes as the PPFs shift out with more effort.
Since scale inefficiencies are small, and in many cases would be worsened by a merger as the consolidated bank moved into the scale diseconomy range (particularly so for megamergers), only an improvement in X-efficiency is likely to lower costs significantly.
A diseconomy of scale became apparent when I analyzed data from the American Hospital Association's 1982 Guide to Hospitals.
In the context of MENA, escalating project costs stemmed from the concurrent inflation of the main price components of EPC therefore, to the IEA s input factors, one should add contractors margins, project risk premiums and the cost of excessive largeness, with the implication of diseconomy of scale due to delays and cost overruns.
One possible explanation of this apparent anomaly is that the increasing economies of scope observed in public IHEs between undergraduate education and research and graduate education overwhelm the product-specific diseconomy of scale.