Economics of scale can be seen in
production of a complex item such as a motor car. The production process involves many different stages. Therefore in order to produce a car you should bifurcate up the process and would require workers specialise in producing a certain part. e.g. a worker may become highly specialised in the design of a car; another in testing e.t.c. Specialisation requires less training of workers and a more efficient production process. However, if you have several distinct production processes, it is most efficient to have a large output.
Economics when applied to real life sounds beautiful. this blog is for those students who are discovering the different facets of economics applications and want to share their discoveries.
Saturday, September 8, 2018
Economics of scale examples
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