CHAPTER II THE CONCENTRATION OF ESTABLISHMENTS
§ 1 the Concentration of Establishments as the Complement of the Division of Labour
The concentration of establishments works together with the division of labor. For example, shoemaking used to happen in individual homes but now takes place in factories. These factories organize similar tasks into departments for mass production, which improves efficiency. Statistical data often shows businesses instead of true production units, making it hard to understand their complexities. Division of labor increases productivity through specialized processes that are repeated. Sometimes, parts of a product are made in different places. An establishment combines different processes based on economic needs. The size of a production unit depends on balancing division of labor with the best use of resources to achieve the highest economic return.
§ 2 the Optimal Size of Establishments in Primary Production and in Transport
The best size for businesses in primary production, like farming and mining, is about how well they use their resources. The Law of Diminishing Returns shows that making a business bigger doesn’t always mean it will save money. There are limits to how large a business can grow before it becomes less efficient. In agriculture, the amount of land available sets a limit, while in mining, the location of resources decides how big the operation can be. Overall, bigger businesses don’t always operate better, and practical limits often stop true concentration in these industries.
§ 3 the Optimal Size of Establishments in Manufacturing
The best size for manufacturing plants depends on where they are located and how production works. Larger plants usually do better than smaller ones, but this advantage only lasts until resources are used most effectively. Each type of production needs a specific location based on where raw materials are found. The division of labor allows factories to specialize, leading to fewer, more uniform plants that can serve more customers. However, since raw materials can't move easily, this limits how many plants can exist for each type of production.
§ 1 the Concentration of Establishments as the Complement of the Division of Labour
The concentration of establishments works together with the division of labor. For example, shoemaking used to happen in individual homes but now takes place in factories. These factories organize similar tasks into departments for mass production, which improves efficiency. Statistical data often shows businesses instead of true production units, making it hard to understand their complexities. Division of labor increases productivity through specialized processes that are repeated. Sometimes, parts of a product are made in different places. An establishment combines different processes based on economic needs. The size of a production unit depends on balancing division of labor with the best use of resources to achieve the highest economic return.
§ 2 the Optimal Size of Establishments in Primary Production and in Transport
The best size for businesses in primary production, like farming and mining, is about how well they use their resources. The Law of Diminishing Returns shows that making a business bigger doesn’t always mean it will save money. There are limits to how large a business can grow before it becomes less efficient. In agriculture, the amount of land available sets a limit, while in mining, the location of resources decides how big the operation can be. Overall, bigger businesses don’t always operate better, and practical limits often stop true concentration in these industries.
§ 3 the Optimal Size of Establishments in Manufacturing
The best size for manufacturing plants depends on where they are located and how production works. Larger plants usually do better than smaller ones, but this advantage only lasts until resources are used most effectively. Each type of production needs a specific location based on where raw materials are found. The division of labor allows factories to specialize, leading to fewer, more uniform plants that can serve more customers. However, since raw materials can't move easily, this limits how many plants can exist for each type of production.