First let's remind ourselves of the definitions and what type of economies of scale there are. It is important to remember that economies/diseconomies of scale occur in the long run, with all factors variable.
Economies of scale
Economies of scale are the advantages that an organisation gains due to an increase in size. These will lead to a decrease in the average costs of production.
Diseconomies of scale
Diseconomies of scale are the disadvantages that an organisation experiences due to an increase in size. They will increase the average costs per unit.
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