what is an economy and diseconomy of scale?

Question

I’m in my economics class and half of what I’m learning makes no sense. Part of it is the way things are explained—I have ADD, so comprehension is difficult for me.

No matter how many time I read I just can’t understand it.

In: 4

Answer 1

An economy of scale is when a company can produce goods at a lower cost per unit because it is producing in large quantities. A diseconomy of scale is when a company’s costs go up as it produces in larger quantities.