Thursday, June 5, 2008

H2: Economies of scale & the 6,014-seat world's largest restaurant!

See a video from BBC on the scale & decor of this restaurant in Syria!

http://news.bbc.co.uk/1/hi/world/middle_east/7435424.stm

A large firm like this restaurant tends to enjoy internal economies of scale (i.e. the lowering of long run average costs as output increases). Its kitchen is like a production line where one chef can prepare 25-30 helpings of popular dishes in one minute - that's one bowl every two seconds!

What other internal economies of scale might this restaurant enjoy? What about internal diseconomies of scale? Find out answers to these questions as we soon study Production & Costs!

No comments: