Economies and Diseconomies of Scale
Introduction
An important economic concept is that of scale: the size of an economic enterprise. As with living things, properties do not always scale linearly, which is to say that the behavior of a system at size 1 may be very different from its behavior at size 10 or 100 or 1000.
( Different? How? )
An important economic concept is that of scale: the size of an economic enterprise. As with living things, properties do not always scale linearly, which is to say that the behavior of a system at size 1 may be very different from its behavior at size 10 or 100 or 1000.
( Different? How? )
Comments 2
Going back to your example of dinosaurs, these were efficient exploiters of their niche. The problem was of change. Smaller dinos (like start ups) may not make maximum use of scale, but make up for it in nimbleness.
One meteor can ruin a whole eco-system.
To wit: There's a huge (mainly empty) building that used to be owned by the telephone company. Ghost town now. Slowly being reclaimed by a Lazer tag emporium. I bet in it's heyday, Ma Belle spend more on lunch (a day) than what it took to get this new company off the ground.
Big bellies can't wait to evolve.
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