Question: what is the difference between​ diminishing marginal​ returns and​ diseconomies of​ scale?
Answer: Difference between diminishing returns and dis-economies of scale. Diminishing returns relates to the short run – higher SRAC. Diseconomies of scale is concerned with the long run. Diseconomies of scale occur when increased output leads to a rise in LRAC – e.g. after Q4, we get a rise in LRAC.