While economies of scale offer numerous benefits, they also have limitations: - Diseconomies of Scale: When a company becomes too large, it can experience diseconomies of scale, where the cost per unit increases due to inefficiencies. - Complexity: Larger operations can lead to increased complexity in management, coordination, and communication. - Bureaucracy: As companies grow, they may face increased bureaucracy, slowing down decision-making processes and reducing flexibility. - Market Saturation: Expanding production capacity may lead to market saturation, where supply exceeds demand, potentially resulting in reduced prices and profits.