Benefit from economies of scale


A student sets up a lemonade stand on the corner of College Avenue and Nova Drive near to BC Central Campus. Temperatures in the area climb to 100 degree Fahrenheit during July and August. The intersection is near to BC Central, NSU and UF campuses. A large construction is going on in these areas. Explain to this young entrepreneur how his business might benefit from economies of scale. Explain also some conditions that might lead to diseconomies of scale.

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Operation Management: Benefit from economies of scale
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