diseconomies

1. Inefficiencies and bottlenecks in manufacturing processes that cause unit costs to rise as output increases. A manufacturing plant may grow so large that it becomes difficult to manage and, as a result, less efficient. Compare economies of scale.
2. Costs that are not borne directly by a manufacturer. For example, a coal-fired electric power plant may emit particulate matter and sulfur oxides that cause damage to vegetation and human health.