TERMIUM Plus®

The Government of Canada’s terminology and linguistic data bank.

diseconomy of scale [1 record]

Record 1 2017-02-21

English

Subject field(s)
  • Corporate Economics
  • Production (Economics)
  • Production Management
DEF

An increase in the average cost per unit of production, as production rises, because of the exceedingly large scale on which the producer operates.

OBS

At some point, when marginal cost equals average cost, a plant will stop yielding economies of scale; it will then be at a point where diseconomies of scale begin, with each extra unit of output costing more than the average cost and thus being unprofitable. In other words, a plant can produce both too little and too much.

OBS

This [diseconomy of scale] can be due to internal factors: for example, the firm may become so big that it becomes increasingly costly and difficult to manage and operate. Or it can be due to external factors, such as increased pollution clean-up costs due to the concentration of major industries along the same river or lake system.

OBS

diseconomy of scale; diminishing return to scale: terms usually used in the plural.

Key term(s)
  • diseconomies of scale
  • diminishing returns to scale

French

Domaine(s)
  • Économie de l'entreprise
  • Production (Économie)
  • Gestion de la production
DEF

Diminution de l'efficience constatée lorsque la quantité produite croît moins rapidement que les quantités de facteurs de production mis en œuvre, résultant en une hausse du coût de revient du produit.

OBS

déséconomie d'échelle; rendement d'échelle décroissant : termes habituellement utilisés au pluriel.

Key term(s)
  • déséconomies d'échelle
  • rendements d'échelle décroissants

Spanish

Campo(s) temático(s)
  • Economía empresarial
  • Producción (Economía)
  • Gestión de la producción
DEF

Por oposición a las economías de escala, la situación que se crea, pérdida de control y de disminución de productividad, como consecuencia de la dimensión excesiva - por encima del óptimo - de una empresa, de una ciudad o de una colectividad de cualquier otro tipo. Pueden superarse a través de medidas de racionalización, llegando incluso a la subdivisión del conjunto en partes más fácilmente gobernables por separado.

Key term(s)
  • deseconomías de escala
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