I’m studying and need help with a Management question to help me learn.
Empirical evidence on the shape of the average cost curve across industries is mixed. A 1992 study, by Robidoux and Lester, found that 57 % of Canadian firms had economies of scale, 23 % had neither economies or diseconomies of scale, and 14 % experienced diseconomies of scale. Can you think of examples of firms or industries that might fall into each category? Why would a firm experience economies of scale? Why would a firm experience diseconomies of scale?
- Length: A minimum of 400 words, not including references
- Citations: At least one high-level scholarly or professional reference in APA format