Describe an activity, process, or product of a major company/corporation

Describe an activity, process, or product of a major company/corporation that exhibits economies or diseconomies of scale. Describe the source of the scale economy. How could the organization exploit the scale economy or diseconomy?

A good example for this discussion identifies the output (what is being produced), the inputs, and how average cost (AC; cost per unit) increased or decreased as that output and input changed over time (‘the long-run’). If AC rises when output and inputs increase from one period to the next (the long-run) then the production exhibits diseconomies of scale. When AC falls it exhibits economies of scale.

Post your answer to the discussion board.

Response Parameters

The discussion board will be set in Canvas to require students to contribute their own response to the prompt prior to reading what classmates have posted. Each student will submit an initial response posting to reflect on all aspects of the prompt. Conclusions must be defended with evidence in appropriate APA format, which means both in-text and end-of-text citations should be included.