Causes/Examples of external Diseconomies of scale

Causes/Examples of external Diseconomies of scale

1. Congestion. This occurs when a number of firms compete for the available space for expansion.
2. Pollution. When  many  firms  concentrate   in one  area,  there  is too  much  wastes  and  fumes   from these  firms  or factories  which  pollute  the environment.   This increases the average costs of fighting pollution or removing the wastes of each firm,
3. High competition. The firms begin to compete   for the facilities   like ware houses,   markets,   raw materials etc. This increases the prices hence higher average costs of production   for each firm,