But more labour, with no improvement in either management structures, governance or operational efficiency will finally lead to what economists call diseconomies of scale
or the forces that cause larger inefficient organisations to produce goods and services at increased per-unit costs.
The size and complexity of mining operations have created diseconomies of scale
and are a significant factor in diminished productivity in the global mining sector, according to a new research report by EY and the University of Queensland (UQ), released today.
as indicative of economies and diseconomies of scale
and economies of density); (3) relationships between (a) transport firms' cost and market structure conditions, (b) transport service pricing policies and practices, and (c) public policy choices toward regulation of transport providers' economic behavior; and (4) linkages between the cost of transport service (as incurred by freight shippers and passengers) and the location of commercial and residential economic activity.
Stimpert and Laux (2011) reported that while costs decline and profitability increases as bank size increases, these relationships do not hold indefinitely and diseconomies of scale
are experienced by larger banks.
farnsworth believes the alternative of reintroducing a levy on foreign racing - abolished by the Levy Board more than ten years ago - would be legally challenged by the betting industry, and introducing Scottish equivalents to the Levy Board and governing body would impose additional institutional costs and the country's racing industry would suffer from diseconomies of scale
compared to the BHA and Levy Board.
For instance, Chaudhury (2008) stresses these common denominators of SMEs: low risk propensity, centralization and low formalism level, diseconomies of scale
and limited autonomy, cultural insularity and identity-based trust relationships.
The diseconomies of scale
may be due to more complex systems, sorting through more no shows, and difficulty in coordinating patient care.
Diseconomies of scale
refer to the increased per unit cost with an increase in output.
Although many LDCs are smaller than the optimal size, diseconomies of scale
suggest that creating a few very large LDCs from a number of smaller LDCs might not be the most economically efficient outcome (Figure 3).
Diseconomies of scale
occur when the percentage increase in a company's operations result in lower percentage increase in a company's output.
More often it is the diseconomies of scale
that eventually emerge.
From the economical context, the results showed that most of the real estate and construction companies are experiencing diseconomies of scale
(from the decreasing results in scale efficiency).