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

What is JAD and how are users involved? What are advantages and disadvantages of JAD?

What are the three dimensions to business problems? Give an example of each.

A laboratory assistant prepared solution of 0.8 M, 0.6 M, 0.4 M, and 0.2 M sucrose, but forgot to label them. After realizing the error, the assistant randomly labeled the flasks containing these four unknown solutions as flask A, flask B, flask C, and flask D.