In this essay we will discuss about the economies and diseconomies of scale. Essay on Economies of Scale: When more units of a good or a service can be produced on a larger scale, yet with (on average) less input costs, economies of scale (ES) are said to be achieved. Alternatively, this means that as a company grows, and production [...]
This article will help you to learn about the difference between economies and diseconomies of scale. Difference between Economies and Diseconomies of Scale Difference # Economies of Scale: Both in private enterprise and public enterprise the main reason for this trend towards increasing size has been the economies of large-scale production. This term economies of large-scale production (or economies of [...]
In this article we will discuss about the reasons leading to economies and diseconomies of scale. Economies of Scale: Various factors may give rise to economies of scale, that is, to decreasing long-run average costs of production: 1. Greater Specialisation of Resources: With an expansion of a firm's scale of operation, its opportunities for specialisation—whether performed by men or by [...]