Unlike economies of scale which refers to the cost advantage
obtained by the firms due to a reduction in production cost, the
disceconomies of scale is just the opposite of it.
It can be defined as the cost disadvantage obtained by a firm
due to increased production cost. It usually occurs when the size
or the level of production Increases.
In other words, disceconomies of scale occur when the marginal
cost of each unit of output Increases with an increase in the
output.
Due to this, the firms suffer losses and they are forced to
decrease the production level and Increase the prices of goods and
services.