352 Week 8: Economies Of Scale

Reply to student robert class 352 wk 8:

This is a very good post. I really like how you covered internal and external economies of scale, and really provide solid examples of each. I took a broad approach about how economies of scale can benefit an industry, but then prevent new competition from entering. Do you think that once economies of scale is achieved that the ethical practices of a company can become more easily identified by consumers? I ask this because if economies of scale begin to prevent new competition and the companies realize if the price for their services resemble one another why lower prices.

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