Economies to an improvement n production efficiency. However,

Economies of scale has been an important issue in business, and it is a central  component of strategic trade policy or in the strategic profiles of multinational firms. The question of what economies of scale is originates from the early phases of the industrial revolution in the United States, in the second half of the 19th century.
The first Nobel prize winner in the United States (1970) Paul A Samuelson pointed out in the book Economics, ” the reason for production in an enterprise is that efficiency usually requires large-scale production, huge fund raising, and the meticulous management afoot activities .” Therefore, in the form of lower long run average costs (LRAC) happens with the expansion of the scale of the enterprise, which could lead to an improvement n production efficiency. However, if the scale is continued, the cost will increase because of the uneconomic management, which is called diseconomies of scale.
Diseconomies of scale refers to higher average costs as the firm’s scale increases that leads to inefficiencies in production in the long-run.