Size Creates Economies of Scale and Economies of Scope

question 105

Essay

Size creates economies of scale and economies of scope. Explain these two advantages of larger size. What are diseconomies of scale? Give an example.

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Definitions:

Foreclosure

An identity status that characterizes those who have made commitments without considering alternatives.

Moratorium Status

A stage in identity development where individuals are actively exploring various options but have not yet made clear or definitive commitments in areas such as occupation or ideology.

James Marcia

A developmental psychologist known for his work on adolescent identity formation and the identity status theory.

Active Exploration

The process by which individuals, often children, actively engage with and investigate their environment to learn and acquire new knowledge.