What is a potential downside of economies of scale, as mentioned in the text?
Understand the Problem
The question is asking about the potential downsides of economies of scale, specifically referencing text that likely outlines these implications. The user needs to understand what drawbacks are associated with economies of scale.
Answer
It can reduce the need for technological innovation.
The potential downside is that it can reduce the need for technological innovation.
Answer for screen readers
The potential downside is that it can reduce the need for technological innovation.
More Information
As companies become larger, they may rely more on existing processes rather than innovating, leading to less technological advancement.
Tips
A common mistake is to assume only financial costs are impacted, ignoring impacts on innovation and agility.
Sources
- The web page with info on - Example Source - gocardless.com
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