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I actually did, but I don't think it disagrees with what I am saying - that it is a normative concept. In other words, some other form of human organization doe
by js8 10y ago
I actually did, but I don't think it disagrees with what I am saying - that it is a normative concept. In other words, some other form of human organization doesn't have to suffer from the same problems.
Let me put it yet differently. If you fail to utilize economies of scale, nobody will profit. However, if "diseconomies of scale" do exist, then it's because someone profits from these. From the perspective of that person, it's not "diseconomy". I mean, you cannot use the Pareto-efficiency to say that everybody would be better off without "diseconomy", and so it cannot be a positivistic claim.
And a little aside - public organizations are often inefficient because there are private companies profiting from them.