Introduction
In the context of microeconomics, the concepts of economies of scale, economies of scope and complimentary relationships are three important elements for a business and it’s strategy. The nature of how a business plans production and schedules pricing can be significantly impacted by changes to any of these factors as profitability may hinge on the number of units sold, the diversity of the types of products sold or how other products in the market change. Economies of scale is the nature of changes to the cost of production for each unit the organization produces. Economies of scale lead ...
