Hi I have a question regarding answer E for the 2nd question.
According to the passage ………decrease when production declines due to inadequate supplies of raw materials, problems on the factory floor, or inefficient sales networks. Consequently, potential economies of scale are based on the physical and engineering characteristics of the production facilities—that is, on tangible capital—but realized economies of scale are operational and organizational, and depend on knowledge, skills, experience, and teamwork—that is, on organized human capabilities, or intangible capital.
I don’t quit get the logic between the two sentence before and after the word ‘Consequently’
Could anyone explain? If fixed and sunken costs are not affected by fluctuations in a manufacturing plant’s throughput, they are affected by what?
According to the passage ………decrease when production declines due to inadequate supplies of raw materials, problems on the factory floor, or inefficient sales networks. Consequently, potential economies of scale are based on the physical and engineering characteristics of the production facilities—that is, on tangible capital—but realized economies of scale are operational and organizational, and depend on knowledge, skills, experience, and teamwork—that is, on organized human capabilities, or intangible capital.
I don’t quit get the logic between the two sentence before and after the word ‘Consequently’
Could anyone explain? If fixed and sunken costs are not affected by fluctuations in a manufacturing plant’s throughput, they are affected by what?
Statistics : Posted by Lizshadehdg • on 29 May 2012, 10:37 • Replies 49 • Views 88570
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