This document discusses economies and diseconomies of scale. It defines economies of scale as lower unit costs that result from large-scale production. There are internal economies from technical, commercial, financial, managerial, and risk-bearing factors. External economies come from industry growth factors like skilled labor pools. Internal technical economies include specialization, indivisible plant size, principle of multiples, and increased dimensions. Diseconomies of scale can occur due to problems managing large organizations, maintaining communication across distances, coordinating diverse activities, and issues with staff motivation when organizations grow very large.