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Scale Telephone

Economies of scale?

Consider the following:
1. a diamond-mining company.
2. an interior design firm in which design projects are based on the expertise of the firm's owner.
3. a telemarketing firm in which employees make sales calls using computers and telephones.

What kind of scales are the firms likely to experience?

A. Diseconomies of scale

B. Economies of scale

C. Constant returns to scale

1. B. Economies of scale for a diamond-mining company: It will face economies of scale because with the expansion of scale it will see economies resulting through common facilities of equipment repairing, purchase of raw materials , greater flexibility in transportation required in the mining property and in deployment of management manpower, and also economies esulting from common stores and inventory control. Costs on all these will rise less than in proportion of scale.
2. A: Diseconomies of scale as an interior design firm in which design projects are based on the expertise of the firm's owner. will suffer from diseconomies of scale beyond a point because it is difficult to hire addtional persons with the same expertise s as the firm's owner. THerefore as more and more projects are taken on hand simultaneously, the owner will be able to devote fewer hours of his attention to each design project on hand which will result in underutilisation of the assistants he hires for different projects. There could be project completion delays due to time constraint of the owner, there being a limit of 24 hours and 7 days a week vailable to him. Being overworked with too many projects in hand his productivity will fall, resulting in higher costs.
3. C: Constant Returns to scale: a telemarketing firm in which employees make sales calls using computers and telephones, is likely to see constant returns to scale. Telephone charges are the same per call and the wages of telephone callers employed is the same. There would be a fixed proportion of supervissors to oversee callers. Telemarketing is more modular in nature. Teams of telemarketing and their equipments will rise in the same proportion of the potential customer base expansion.

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REVELL HO SCALE TELEPHONE POLES BACHMAN BLOCK SIGNALS GREAT LAKES MANHOLE COVERS
REVELL HO SCALE TELEPHONE POLES BACHMAN BLOCK SIGNALS GREAT LAKES MANHOLE COVERS
$3.25
Vintage Lot HO Scale Model Railroad Trees Track  and Telephone Polls Lot
Vintage Lot HO Scale Model Railroad Trees Track and Telephone Polls Lot
$12.00
Vintage NEW AHM Telephone Poles 12 Pieces HO Scale Model Train Utility Painted
Vintage NEW AHM Telephone Poles 12 Pieces HO Scale Model Train Utility Painted
$7.20
HO SCALE Lot Of 2 Telephone Poles  Signs  Freight Car In Boxes
HO SCALE Lot Of 2 Telephone Poles Signs Freight Car In Boxes
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BACHMANN HO SCALE 36 SIGNS AND TELEPHONE POLES 24 SIGNS 12 POLES SEALED IN BAGS
BACHMANN HO SCALE 36 SIGNS AND TELEPHONE POLES 24 SIGNS 12 POLES SEALED IN BAGS
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HO scale sign painter telephone poles signs billboards
HO scale sign painter telephone poles signs billboards
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HO Scale Telephone Poles lot of 10
HO Scale Telephone Poles lot of 10
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HO Scale Telephone Poles Signs and Misc Lot
HO Scale Telephone Poles Signs and Misc Lot
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Miniatures HO Scale Railroad Telephone Poles Signs  Unpainted People 005 018
Miniatures HO Scale Railroad Telephone Poles Signs Unpainted People 005 018
$19.99
Telephone Poles 12 HO scale by Bachmann BAC42102
Telephone Poles 12 HO scale by Bachmann BAC42102
$4.99
HO SCALE BRASS TELEPHONE POLE LOT OF 19 CUSTOM BUILT UNDECORATED
HO SCALE BRASS TELEPHONE POLE LOT OF 19 CUSTOM BUILT UNDECORATED
$28.95
Precision Scale HO 5855 Telephone Control Box Brass
Precision Scale HO 5855 Telephone Control Box Brass
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HO Scale Detailed Telephone Poles NEW
HO Scale Detailed Telephone Poles NEW
$4.99
HO Scale Detailed Parts LOT Telephone Poles Wall +
HO Scale Detailed Parts LOT Telephone Poles Wall +
$3.99
Lot of HO Scale Plastic Telephone Poles Sliding Board Few Animals Look
Lot of HO Scale Plastic Telephone Poles Sliding Board Few Animals Look
$17.00
HO SCALE built vintage building lot Atlas telephone shanty painted accessories
HO SCALE built vintage building lot Atlas telephone shanty painted accessories
$8.50
Ho scale train hobby scenics city sidewalk Life Like s112r unopened telephone
Ho scale train hobby scenics city sidewalk Life Like s112r unopened telephone
$9.90
Outland Models Railway Classic Wood Style Telephone Phone Box Booth x2 HO Scale
Outland Models Railway Classic Wood Style Telephone Phone Box Booth x2 HO Scale
$5.99
HO SCALE DETAIL LOT YELLOW STREET SIGNS  TELEPHONE POLES with train car
HO SCALE DETAIL LOT YELLOW STREET SIGNS TELEPHONE POLES with train car
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BACHMANN HO SCALE VINTAGE ROAD SIDE SIGNS TELEPHONE POLES
BACHMANN HO SCALE VINTAGE ROAD SIDE SIGNS TELEPHONE POLES
$9.95
Bachmann HO Scale Telephone Poles Yard Limit Crossing Signs
Bachmann HO Scale Telephone Poles Yard Limit Crossing Signs
$5.00
HO Scale Modern Illuminated Telephone Booth Yellow Brawa 5445
HO Scale Modern Illuminated Telephone Booth Yellow Brawa 5445
$6.98
Vintage TYCO HO Scale Telephone Poles 4 Tall Lot of 11
Vintage TYCO HO Scale Telephone Poles 4 Tall Lot of 11
$5.00
ATLAS NEW SET OF 12 TELEPHONE POLES HO SCALE RAILROAD
ATLAS NEW SET OF 12 TELEPHONE POLES HO SCALE RAILROAD
$7.99
HO Scale Telephone Pole Style Billboard Kit 2 pack JL Innovative 176
HO Scale Telephone Pole Style Billboard Kit 2 pack JL Innovative 176
$7.50
HO Scale Bag of 12 Telephone Poles  24 Road Signs
HO Scale Bag of 12 Telephone Poles 24 Road Signs
$0.99
HO Scale Bag of 12 Telephone Poles24 Road Signs  48 Railroad Signs Unpainted
HO Scale Bag of 12 Telephone Poles24 Road Signs 48 Railroad Signs Unpainted
$0.99
Life like HO scale road signs telephone poles and more about 48 pieces total
Life like HO scale road signs telephone poles and more about 48 pieces total
$12.99
HO Scale Atlas 12 Telephone Poles Kit New in Orig Box
HO Scale Atlas 12 Telephone Poles Kit New in Orig Box
$10.03
HO SCALE TRAINS LOT Buildings people telephone poles and tractors
HO SCALE TRAINS LOT Buildings people telephone poles and tractors
$4.99
LOT OF 35 HO SCALE TELEPHONE POWER POLES CUSTOM PAINTED
LOT OF 35 HO SCALE TELEPHONE POWER POLES CUSTOM PAINTED
$6.99
Lot HO Scale Trains AHM Scene Telephone Poles 5610 Railroad Traffic Signs 5612
Lot HO Scale Trains AHM Scene Telephone Poles 5610 Railroad Traffic Signs 5612
$9.99
12 HO Scale Trains Bachmann Telephone Poles Free Shipping
12 HO Scale Trains Bachmann Telephone Poles Free Shipping
$7.99
HO scale Model train Railway layout Shelter Station Bus Stop + telephone booth
HO scale Model train Railway layout Shelter Station Bus Stop + telephone booth
$14.99
3x HO 187 Scale Model Train Layout Telephone Booth Shanty Shed Guard Pavilion
3x HO 187 Scale Model Train Layout Telephone Booth Shanty Shed Guard Pavilion
$15.99
PREISER HO SCALE 10374 TELEPHONE WORKER WITH TENT
PREISER HO SCALE 10374 TELEPHONE WORKER WITH TENT
$25.49
ho scale lot american sign national beer w telephone poles sealed rustic fence
ho scale lot american sign national beer w telephone poles sealed rustic fence
$9.50
ATLAS MODEL RAILROAD HO SCALE TELEPHONE POLES 12 box
ATLAS MODEL RAILROAD HO SCALE TELEPHONE POLES 12 box
$6.75
Atlas HO Scale Telephone Shanty  Pole Kit 705 Ships FREE In US
Atlas HO Scale Telephone Shanty Pole Kit 705 Ships FREE In US
$9.99
GC Laser HO Scale Telephone Booth 2 pack Kit 19091 Bob The Train Guy
GC Laser HO Scale Telephone Booth 2 pack Kit 19091 Bob The Train Guy
$5.99


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