The session on diseconomies of scale. So diseconomies of scale is once economies of scale have been reached that if the business grows or increases output, this will lead to the average cost per unit per thing going up, increasing. Now, if you look at this diagram here, you'll see cost per unit on the y-axis and output on the x-axis. Now, I've split this curly line, which is the average cost per unit line or average cost curve. And I've split it into two bits, the black bin and the red bin. Now, the black bit is basically achieving economies of scale, because as you increase your output, the cost per unit is actually coming down. So as I'm going out from here towards X, the average cost per unit is going out. But then there's a certain point where you absolutely maximize your economies of scale. This is kind of known as the minimum efficient scale. But as you go to the right of this output, if you increase your output, you actually can see your... The average cost per unit is increasing, it's increasing, it's increasing, it's increasing. And that red line symbolizes dis-economies of scale. Now, dis-economies of scale, there are three common reasons for it happening. Let's go through them. So the first is that you're going to get employee coordination. So as the business has too many employees, because output's huge, that you're going to get overcrowding of employees in certain areas, such as operations or marketing or anywhere, really. And it's the idea that because you've got this duplication of tasks because you've got such overcrowding with employees and they're just doing the same things, too many cooks as it were, then it's going to increase your costs and cause those diseconomies to scale. Now, the next reason is employee motivation. And that's when the business has too many employees, employees feel less significant. They just feel like a cog in the wheel. They're not as motivated. They're demotivated. And because they're less motivated, they're less productive, and that might lead to higher waste and cause these diseconomies to scale. And the third is employee communication, because as the business has many employees, there's more cost in communication from senior management, from the board to all its employees, because there's so many employees. And if they want to communicate ideas, communicate processes, communicate any information, it costs more. And it might also lead them to actually having to do a very top down, one way approach in terms of how they communicate these ideas, processes or information. And. That actually might make the employees feel demotivated because they're just essentially always being told what to do in this top-down approach. They're all the reasons why you're going to get this average cost per unit increasing as your output increasing, which is exactly what this economies of scale is. I'll see you at the next video.