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Internal diseconomies of scale occur when the size of a company becomes too large, leading to inefficiencies and higher costs. This can be due to issues like coordination problems, communication breakdowns, or a loss of accountability as the organization grows. As a result, the firm may experience decreasing returns to scale and reduced profitability.

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1y ago

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I assume you mean economies of scale and diseconomies of scale. Economies of scale are the benefits of lower average costs gained by a firm because it is large. Economies of scale can include things like the bulk buying of raw materials etc. Diseconomies of scale happen when a firm becomes too large for its own good and becomes inefficient, therefore resulting in higher average costs.


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buang ka!


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as growth continues a point may be reached where certain internal diseconomies of scale arise such as management, labour, other inputs


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The Nigerian National Petroleum Corporation (NNPC) can achieve internal economies of scale by increasing the scale of its operations to lower its average cost per unit. This can be done by consolidating its operations, standardizing processes, and utilizing resources more efficiently. By optimizing its production processes, investing in technology, and streamlining its supply chain management, the NNPC can benefit from economies of scale and improve its overall efficiency and competitiveness in the industry.