Understanding Economies and Diseconomies of Scale

Skibidi, let us dive into the world of economies of scale where the goon-level efficiency skyrockets as businesses expand. When firms scale up their output, they tap into dank internal and external factors that lower average costs like a sigma grinding for efficiency. Purchasing economies hit hard when large operations snag bulk discounts, making those small timers look like lowkey amateurs. Meanwhile, managerial economies flex their edge by hiring specialists who streamline processes. But beware, after hitting that sweet spot, diseconomies of scale kick in, causing average costs to rise, proving that even the biggest ships can capsize.