Why are the minimum efficient scale important to technological factors?

Why are the minimum efficient scale important to technological factors?




Answer:

- Definition: The level of output at which most plant-level scale economies are exhausted
- When minimum efficient scale is high, choose centralized production in a single location or a limited number of locations
- When minimum efficient scale is low, respond to local market demands and hedge against currency risk by operating in multiple locations

Comments

Popular posts from this blog

Examine the collapse of Han. What factors explain how this occurred? How influential in Han Dynasty on Chinese History?

JAD Advantages and Disadvantages

Summarize effective communication strategies in organizational hierarchies, and review the role and relevance of the organizational grapevine