It is oftentimes assumed that larger and larger plants lead to lower unit costs due to economies of scale. However, there is a growing body of data that supports the notion that bigness is not necessarily good, particularly for customers and investors. Based on such findings, should leaders of large organizations ever contemplate divesting assets or businesses?Does this suggest an entirely different approach to bigness on the part of regulators? Instead of “too big to fail” should we be worried about “too big to succeed?” What do you think?
MQM 220 – It is oftentimes assumed that larger and larger plants
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