Economies of scale

Question 1

Describe the likely economies and diseconomies of scale for:

  1. A large supermarket chain, like Tesco

  2. A large computer games manufacturer operating in several countries, like Sony

Question 2

  1. What is MES, and how is it likely to be different for a firm of solicitors and a computer chip manufacturer?

  2. What is the significance of MES for the number of firms in an industry?