Economies of Scale: Economies of scale are cost advantages achieved by increasing production and expanding operations, resulting in lower average costs per unit.
Diminishing Marginal Returns: Diminishing marginal returns occur when adding more units (e.g., workers or machines) to the production process leads to a smaller increase in output. This can contribute to diseconomies of scale.
Bureaucracy: Bureaucracy refers to a complex organizational structure with multiple layers of management and decision-making processes. It can lead to inefficiencies and hinder productivity, contributing to diseconomies of scale.