The tipping point for economies of scale?

Very thoughtful article in the Economist which discusses the idea that there are diminishing returns to scale ie in other words operations and organisations can take advantage of economies of scale up to a certain point, but beyond a certain size no more economies can be found – indeed costs may rise.  The article compares scale economies in the container shipping sector with the construction industry, before going on to look at the size of firms themselves.  The concept of economies of scale is explained on page 63 of the book.

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