Diseconomies arise when a firm produces beyond the minimum point of the long-run average cost curve. This causes the average cost of each successive unit of output to increase. At the level of the plant, diseconomies may arise from congestion, as more people or machines in the same locality get in each others’ way. At the level of the firm, which can have multiple plants, it is harder to see how diseconomies of scale can arise. Very large organizations may require many layers of management, increasing the difficulty of information transmission and motivation.