Why is it dangerous to justify capacity expansion using economies of scale?
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Last Updated:
12-Jul-23
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Why is it dangerous to justify capacity expansion using economies of scale?
- It is far too specific to use as a basis for capacity decisions.
- It requires consideration of quality, dependability and flexibility.
- Because volume, capacity, and process considerations are looked at individually.
- Because the common notion that unit costs will decline for larger facilities due to size is not necessarily accurate.
