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    Economies of scale

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    "Because of economics of scale, it is sometimes more cost effective for a firm to operate a large plant at less than maximum efficiency than a small plant at maximum efficiency." Do you agree or disagree and why? Adding personal experience/knowledge is always appreciated!

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    https://brainmass.com/economics/production/economies-of-scale-81776

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    I do agree with these statements because it often makes sense to make additional investments on a large facility in order to obtain substantial benefits in terms of reducing costs of production due to large economies of scale and more bargaining power in terms of obtaining raw materials from ...

    Solution Summary

    "Because of economics of scale, it is sometimes more cost effective for a firm to operate a large plant at less than maximum efficiency than a small plant at maximum efficiency." Do you agree or disagree and why? Adding personal experience/knowledge is always appreciated!

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