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Financial drawbacks. Diseconomies of scale may occur when an enterprise becomes too large, sites become constricted, the flow of goods is congested, or the workforce is alienated. See Barcena-Ruiz and Begona Garzon (2005) Eur. J. Pol. Econ. 21, 1 on economic integration and privatization under diseconomies of scale. See economies of scale.

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