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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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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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Sequoia Scale Models HO 2019 2 Telephone Boxes Kit OOP NOS White Metal
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Set of 12 HO scale telephone poles
Set of 12 HO scale telephone poles
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HO Scale Detailed Telephone Poles 26pcs LOT
HO Scale Detailed Telephone Poles 26pcs LOT
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HO Scale Detailed Telephone Poles 11pcs LOT
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HO Scale Telephone Pole Style Billboard Kit 2 pack JL Innovative 176
HO Scale Telephone Pole Style Billboard Kit 2 pack JL Innovative 176
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Lot Of Telephone Electric power Poles HO Scale 40 poles in Lot
Lot Of Telephone Electric power Poles HO Scale 40 poles in Lot
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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
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ATLAS NEW SET OF 12 TELEPHONE POLES HO SCALE RAILROAD
ATLAS NEW SET OF 12 TELEPHONE POLES HO SCALE RAILROAD
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Bachmann + HO Scale Lot of 31 Telephone Power Electric Poles
Bachmann + HO Scale Lot of 31 Telephone Power Electric Poles
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HO Scale Signs Billboards people Telephone Poles Railroad Slot Car Tracks
HO Scale Signs Billboards people Telephone Poles Railroad Slot Car Tracks
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D72 LOT OF 12 VINTAGE BROWN PLASTIC HO SCALE TELEPHONE POLES
D72 LOT OF 12 VINTAGE BROWN PLASTIC HO SCALE TELEPHONE POLES
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PREISER HO SCALE 10374 TELEPHONE WORKER WITH TENT
PREISER HO SCALE 10374 TELEPHONE WORKER WITH TENT
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Bachmann HO Scale Telephone Poles 12pcs NIP
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LOT 100+ HO SCALE MODEL TRAIN FIGURES  PEOPLE ANIMALS TELEPHONE POLES TREES
LOT 100+ HO SCALE MODEL TRAIN FIGURES PEOPLE ANIMALS TELEPHONE POLES TREES
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Mini Metals  30304 1941 46 Chevy Telephone Truck Bell HO Scale MIB
Mini Metals 30304 1941 46 Chevy Telephone Truck Bell HO Scale MIB
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Atlas HO Scale Telephone Shanty  Pole Kit 705 Ships FREE In US
Atlas HO Scale Telephone Shanty Pole Kit 705 Ships FREE In US
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GC Laser HO Scale Telephone Booth 2 pack Kit 19091 Bob The Train Guy
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SET OF 20 TELEPHONE POLES  SIGNS AND TARGETS HO SCALE 1 87
SET OF 20 TELEPHONE POLES SIGNS AND TARGETS HO SCALE 1 87
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ho scale bridges and signs and telephone poles
ho scale bridges and signs and telephone poles
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HO SCALE PEOPLE EtcSIGNS Telephone Poles New Old Stock
HO SCALE PEOPLE EtcSIGNS Telephone Poles New Old Stock
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TYCO HO Scale Railroad Train 24 Accessories Telephone Poles  Signs Original Box
TYCO HO Scale Railroad Train 24 Accessories Telephone Poles Signs Original Box
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Ho scale Atlas 12 Telephone Poles Item  775
Ho scale Atlas 12 Telephone Poles Item 775
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SET OF TELEPHONE POLES AND SIGNS HO SCALE 1 87
SET OF TELEPHONE POLES AND SIGNS HO SCALE 1 87
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SET OF 21 TELEPHONE POLES HO SCALE 1 87
SET OF 21 TELEPHONE POLES HO SCALE 1 87
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LOT of 9 MAR PLASTIC MODEL TRAIN RAILROAD O SCALE TELEPHONE POLES ELECTRIC
LOT of 9 MAR PLASTIC MODEL TRAIN RAILROAD O SCALE TELEPHONE POLES ELECTRIC
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Brawa Telephone booth lighted HO Scale Model Railroad Road Accessory 5441
Brawa Telephone booth lighted HO Scale Model Railroad Road Accessory 5441
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33 Telephone Poles HO Scale Train ATLAS  775 Box Tyco  Life Like
33 Telephone Poles HO Scale Train ATLAS 775 Box Tyco Life Like
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Massive Lot Vintage HO Scale Model Train telephone poles signs lamps people
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2 HO Precision Scale brass telephone control box with switch stand
2 HO Precision Scale brass telephone control box with switch stand
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2 TRACKSIDE Railroad TELEPHONE BOOTHS CONCRETE Finished HO Scale set
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HO Scale Train Railroad Accessories Bachmann Telephone Poles 12 pc lot 42102
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HO Scale 60 Plastic Telephone Poles NR 542
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HO SCALE 12 TELEPHONE POLES IN BAG
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HO Scale 40pcs Telephone Poles+2 Billboard signs 40pcs Railroad signs More
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New HO Scale Telephone Poles 12 Piece by Bachmann
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HO Scale Telephone Poles Street Lamps Warning Signal Couplers etc see desc
HO Scale Telephone Poles Street Lamps Warning Signal Couplers etc see desc
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Atlas HO scale 12 telephone poles 775
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Vintage HO scale telephone electric wire holders Plastic 2 3 inches tall
Vintage HO scale telephone electric wire holders Plastic 2 3 inches tall
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Ho scale Alexander Telephone Shelter Item  3114
Ho scale Alexander Telephone Shelter Item 3114
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