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Scale paradox: Difference between revisions
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{{a|risk|[[File:Grima.jpg|thumb|center|450px|A revenue generating business unit at its [[opco]] yesterday]]}} | {{a|risk|[[File:Grima.jpg|thumb|center|450px|A revenue generating business unit at its [[opco]] yesterday]]}} | ||
The '''[[Scale paradox]]''': | The '''[[Scale paradox]]''': [[:Category:Paradox|Paradox]]<nowiki/>ically, the pursuit of economies of scale ''in itself'' increasingly undermines the natural economies of scale. | ||
There is a natural upper bound to the effective size of a firm, wherein the marginal cost of the machinery required to pursue economies exceeds the marginal benefit to be gained by realising them. This is a kind of [[Schwarzschild radius]]. It has two consequences: | There is a natural upper bound to the effective size of a firm, wherein the marginal cost of the machinery required to pursue economies exceeds the marginal benefit to be gained by realising them. This is a kind of [[Schwarzschild radius]]. It has two consequences: | ||