Given that they already have massive economies of scale
in virtually every aspect of production except for electric motors and batteries, these rivals should be able to develop attractive electric vehicles at a $25,000 price point long before Tesla.
The good news is that economies of scale
can lower a carrier's average costs and potentially lower the freight rates charged to their shipper customers.
Toby (2006) reviewed previous studies on economies of scale
in the banking industry and concluded that smaller banks are more efficient in comparison to larger banks in most countries.
Leband and Lentz (2003) suggested that economies of scale
can be utilized at the department level as well.
The economies of scale
provided in the merger should increase service capabilities for all credit union clients of the merged banks, the FHLB said.
Thus, for Sub-Saharan Africa, the need to build economies of scale
would depend on the availability of energy, transportation, communication and social infrastructure, water resource management, fiscal convergence and labour mobility, among others, that feature prominently on the agenda of the African Economic Conference.
Despite the increasing numbers of tyre sales in the country, the exploitation of economies of scale
still plays an important role in modern economies.
In one example of economies of scale
, households with multiple members are able to achieve the same standard of living at lower per capita expenditures on public goods than smaller households.
These were customer service, economies of scale
and the need for owners and investors to adjust to an environment where returns will be lower than in the past, he said.
This would encourage setting up of mega power plants to take advantage of economies of scale
and improve their viability.
Summary: New Economies of Scale
to Bring More LNG to Global Market
The call to enlarge or merge nursing homes in order to lower costs rests on the assumption that economies of scale
exist within the cost structure of these homes.
Thus state Departments of Local Government have deliberately designed new constellations of merged councils on the assumption that larger populations subsumed greater economies of scale
. Greater population size has thereby become synonymous with increased scale economies.
With the price tag for a digester in the $1 million range, Stubbings says Ontario simply does not have huge factory farms for a reasonable return on investment as well as the economies of scale
to pursue that waste market.
"With the increase in occupancy and rental rates within Waterford over the past 12 months, these newly acquired assets bring economies of scale
to MetLife," stated Gale.