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Old 02-08-2007, 05:06 PM
tolbiny tolbiny is offline
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Join Date: Mar 2004
Posts: 7,347
Default Economies of scale

There are a bunch of different threads where this post would be applicable, but i think that it deserves its own (short) thread.

"Economies of scale don't go all the way up" I don't know who said it, but this is absolutely true. While greater efficiency can be gained through increased size this does not extend toward infinity, at some point the individual human's limitations come into play. We are all limited by time and energy within our physical selves. As long as this is true there will be a point in which a larger organization will be less efficient as extra layers of management (or beauracracy) must be added to continually delegate responsibilities. The direct implication for this forum is that statements along the lines of "monopolies are more efficient because of economies of scale" will no longer be tolerated as a thought out argument.
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