Scenario
Macrohard Aluminum, Inc. wants to increase its overall size in the hopes of gaining greater market shares of the various products it sells. As manager, you have to analyze this plan by reviewing and then recommending specific ways that the expansion will be able to enjoy some economies of scale in order to justify the increase in the size of the company.
Describe in detail the meaning of economies of scale.
Identify 4 specific ways that the company might be able to achieve economies of scale from increasing its size, and describe each one separately.
Describe in detail the meaning of diseconomies of scale, and explain 2 specific ways how increasing the size of Macrohard Aluminum, Inc. could unintentionally result in some diseconomies of scale.
