Questions on economies and diseconomies of scale
Economies of scale
Question 1
Describe the likely economies and diseconomies of scale for:
- A large supermarket chain, like Tesco
- A large computer games manufacturer operating in several countries, like Sony
Question 2
- What is MES, and how is it likely to be different for a firm of solicitors and a computer chip manufacturer?
- What is the significance of MES for the number of firms in an industry?