Monday, December 19, 2011

To Gain Scale

When we do something, an energy is spend. If we have ten things to do and doing we do not spend ten but eight energies, there was some economy of scale in here. The number of events or their size or their combination makes the whole be less than the sum of its parts. We're talking about costs and time, mainly.

If a messenger is to take an order up to the East Side and I say him to wait a bit to get a second order with him, I gained scale. The cost of waiting a bit is minor looking on the cost of two trips. It costs ten coins to take an order, and costs only thirteen to take two.

One of the great economies of scale in human history was the segregation of duties. Some blacksmiths, more soldiers and much more farmers. Human society ran into a segregated model of agricultural basis to gain scale until very recently.

The news are the economy of scale that cities bring. By concentrating services and reducing distances, allowing faster connections, thinking sewage treatment in scale and electricity power scale, cities increase the possibilities; they are inducers for gains in management and economic models.

In business, seeking economies of scale are ways for doing more with less. The average cost falls faster if we make more of the same or more at once. Or both.

i like administration a lot

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