AutoEdge: Economies of Scale

AutoEdge: Economies of Scale

“We’re both busy, so I’ll get right to the point,” he says. “One of the main objectives of any business is to be efficient. Without efficiency, the company is essentially losing money. Am I right?”

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“Absolutely,” you say.

“What must AutoEdge do,” he says, “to obtain economies of scale with production? How do we know that it has achieved economies of scale? Conversely, how do we know if it is achieving diseconomies of scale?”

“That’s a good question,” you say. “I can understand why you ask.”

“I have to get back to the office to handle an emergency,” he says. “Would you send me an e-mail with an answer to my questions, please?”

“No problem,” you say. “I’ll get it to you before I leave work this afternoon.”

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