Definition

A situation where costs increase instead of decrease, often due to inefficiencies or poor management.

Example

The company faced a diseconomy when its production costs rose unexpectedly.

Conversation

Have you ever thought about how a business can face diseconomy of scale?

Yeah, I read that it happens when a company grows too big too fast.

Exactly! It leads to higher costs which can be really detrimental.

Right, and it can affect their overall profitability if not managed well.

Synonyms & Antonyms

Root Explanation

Diseconomy → It is formed from "dis-" (meaning apart or away) and "economy" (from Greek "oikonomia", meaning household management or administration). The term refers to a situation where economic efficiency is lost or where resources are not managed effectively, hence the idea of being apart from proper economic management.

Memory Tip

Think of 'dis-' meaning apart and 'economy' relating to management of resources — this helps you remember that 'diseconomy' refers to poor management of economic resources.

Visually Confused Words