Choosing the scale of production

From WikiTextbook

An example of a larger scale of production is Sony making millions of PSPs and a smaller scale of production can be around the size of a small bakery, making around a few thousand a day.

If you don�t choose the right scale of production for your business you could be putting your company in danger. With higher scales of production come higher annual costs and for a small business, you might not be able to maintain it or you might not have enough money for a start up in the first place. Only large businesses can maintain a high scale of production. Plus this could lead to diseconomies of scale, which come about because it�s difficult to organise a larger work force.

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