It is common in business analyses to invoke different efficiencies generated by scale. Growth is associated with declining average costs/sales and rising profit margins. Factors cited include the relatively fixed nature of some costs, increased bargaining power, and network effects. We...

It is common in business analyses to invoke different efficiencies generated by scale and assume that costs grow at a slower rate than sales as organizations grow. Factors cited include the relatively fixed nature of many costs and increased bargaining power. Growth should thus be associated...