Question: Utilizing the following link, COVID-19, explain how COVID-19 procedures have inhibited firms' achievement of economies of scale, essentially hastening the onset of diseconomies of scale.

  1. Utilizing the following link, COVID-19, explain how COVID-19 procedures have inhibited firms' achievement of economies of scale, essentially hastening the onset of diseconomies of scale. First, explain how attempts at dealing with COVID-19 have resulted in less demand for a cadre of services such as airline travel, restaurants, barber shops, salons, and theme parks. Focus on the notion of "less quantity of output" and how that would inhibit the achievement of economies of scale. Secondly, explain what firms like the above are doing trying to save their businesses as they deal with the pandemic. Are these attempts at saving their businesses being successful? 
  2. What would it take to rebuild economies of scale and the associated benefits? 

Step by Step Solution

3.42 Rating (149 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

During the COVID19 pandemic firms in various industries have faced significant challenges in achieving economies of scale due to the profound impacts of the crisis on consumer demand and operational e... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Document Format (2 attachments)

PDF file Icon

6642cbfce418b_974085.pdf

180 KBs PDF File

Word file Icon

6642cbfce418b_974085.docx

120 KBs Word File

Students Have Also Explored These Related Economics Questions!