Diseconomies of Scale

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Economizes of Scale

Large-scale production is not without its disadvantages. Some of these disadvantages are. Over-worked Management. A large scale producer cannot pay full attention to every detail. Costs often rise on account of the dishonesty of the employees or waste of materials by them. This is due to the lack of supervision. Owing to laxity of control costs of production go up. The management is overworked. Individual tastes Ignored. Large-scale production is a mass production or standardized production. Goods of uniform quality are turned out irrespective of the preferences of individual customers. Individual tastes are not, therefore. satisfied. This results in a loss of custom.

No Personal Element. A large-scale business is generally managed by paid employees. The owner is usually absent. The sympathy and personal touch, which ought to exist between the master and the  are missing. Frequent misunderstandings lead to strikes and lock-outs. This is positively harmful to the business.

International complications and war. When the large-scale producers operate on an international scale, their interests clash either on the score of markets or of materials. These complications sometimes lead to armedmodern war arose on account of re for materials and markets

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Diseconomies of Scale