Diseconomies of scale exist for all of the following reasons except :

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Diseconomies of scale refer to the increase in costs per unit of output as the size of a firm or organization grows. This can happen due to bureaucratic inefficiencies, management problems, and failures in information flows. However, it does not happen because the firm size is too small. In fact, small firms may experience economies of scale, where the costs per unit of output decrease as the firm grows.

Diseconomies of Scale Exist for All of the Following Reasons