when do diseconomies of scale occur 
diseconomies of scale can occur when companies fumble their expansion plans they may ramp up production but their costs per unit increase rather than decrease they may have hired too many managers or opened too many locations they may have failed to buy the right equipment or hire the right workers in such cases they may need to reevaluate their expansion plans the bottom lineeconomies of scale can lead to increased success of a business by creating cost advantages when a company becomes more efficient and increases production the per unit cost decreases this cost advantage can result in higher profits or increased sales if the cost advantage is passed on to the consumer through reduced prices 