Alfred Chandler, who was a professor at the Harvard Business School, once observed: Imagine the diseconomies of

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Alfred Chandler, who was a professor at the Harvard Business School, once observed: "Imagine the diseconomies of scale-the great increase in unit costs-that would result from placing close to one-fourth of the world's production of shoes, or textiles, or lumber into three factories or mills!" The shoe, textile, and lumber industries are very competitive, with many firms producing each of these products. Briefly explain how Chandler's observation helps explain why these industries are competitive.
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Economics

ISBN: 978-0134106243

6th edition

Authors: R. Glenn Hubbard

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