Production Time and Cost as a function of Size

Guest · Post by **Guest** » 29.03.2007, 00:19

I understand the indirect cost benefit of larger plantations and optimization.

What I would like to know is production time reduction as a result of expansion linear? Or is there an increasing benefit related to the size of the facility? Does a factory 2x as big (with the equivilent employee / m2 ) produce 2x as fast at 40:20 as it does at 400:200?

Also, does production cost per unit ever decrease as a function of size?

Guest · Post by **Guest** » 29.03.2007, 01:01

Going by www.kapitools.de I'll use a Well, in Yellow, at Merchant:

2 employees: 29.7 oil / hr
20 employees: 272.73 oil / hr
200 employees: 1500.00 oil / hr

So no, the marginal benefit of an additional worker goes down. And the costs don't go down. So there is no "economy of scale."