Economies and diseconomies of scale

Economies and diseconomies of scale

Economies and diseconomies of scale are critical topics when talking about how businesses produce their products. The impact that each of these concepts has on how businesses decide what amount they will produce and how that impacts their profits makes this an interesting discussion question. Pick one business that operates in either of these situations and show how the business has performed over the last 5 years.

Make sure you discuss why you believe your business is operating in either economies or diseconomies of scale and provide numbers to confirm your assertion.