One of the concepts covered in this week’s readings from the textbook is economies of scale.
One of the concepts covered in this week’s readings from the textbook is economies of scale. First, provide definition of economies of scale and how this concept is tied into a firm’s production costs. You can also cover any related concepts such as economies of scope, diseconomies of scale, etc. in your discussion.
Next, read this article that highlights the concept of economies of scale in start-ups. What points raised by the author did you find to be particularly helpful (or not helpful) in thinking through this issue? Do you have any points of disagreement with the author?
Finally, provide your own example of a company that you think has achieved economies of scale, economies of scope OR diseconomies of scale. Discuss why you think the company has achieved this position and what you think are the main factors to consider as the company looks to the future.
Link article: https://www.worldfinance.com/strategy/start-ups-are-growing-like-never-before-thanks-to-economies-of-scale
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