The fees are particularly essential for credit unions: far smaller than banks, they cannot take advantage of economies of scale to reduce the cost of servicing their customers.
The fact that the current big players have so much market share, capital, and the advantage of economies of scale and huge advertising budgets only makes matters worse.
As time progresses and as an industrial process is developed that enables the company to take advantage of economies of scale, this outlay is likely to fall, says Janin.
Not only did consumers enjoy the benefits of more options and greater competition, but the larger market also allowed businesses to take greater advantage of economies of scale, pushing prices down.
Starting in the late 1990s, dentists began banding together under DSOs, taking advantage of economies of scale in order to cut overhead costs and provide quality service at much lower prices.
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With a smaller number of DVDs to handle, the company may lose out on the advantage of economies of scale and its distribution centers may not run as efficiently as they used to.
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Due to fewer number of DVDs to handle, the company may lose out on the advantage of economies of scale and its distribution centers may not run as efficiently as they used to.
As fewer, more powerful and more complicated banks vie for business across the same landscape, their size will push them to make larger and larger loans to bigger and bigger borrowers to take advantage of their economies of scale.
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That means CCDs can't take advantage of the same economies of scale that have continually reduced the cost of memory chips and microprocessors.
While ArcelorMittal definitely holds the advantage in economies of scale, we do believe that U.S. Steel has an opportunity to steadily lift its profit margins over the coming years.
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Economies of scale in banking are not an advantage in fund management.
The rising tide of TDD-LTE networks globally in the 2.5GHz band will ultimately allow Clearwire to realize significant economies of scale and provide a valuable competitive advantage.
But just considering economies of scale actually under-estimates the compliance advantage of large corporations.
Amazon built unparalleled warehousing, distribution and customer management economies of scale that still exert, by some estimates, a 19% price advantage over Walmart.
In an industry in which economies of scale have been a big factor, size should give the bigger firm an advantage.
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