Economies of Scale and Diseconomies of Scale

Economies of Scale and Diseconomies of Scale Name Institution Economies of Scale and Diseconomies of Scale Amazon’s move to establish its second headquarters in Long Island City, New York offered interesting prospects to one of the world’s leading retail business organizations. The firm sought to reduce its overwhelming presence in its current headquarters in the city of Seattle. Like in Seattle, the move would have its share of merits and demerits to the city of New York. One of the merits for New York to have Amazon’s second headquarter in Long Island City would be the fact that it would create new employment opportunities for the city dwellers. According to Amazon, the move would have created over 25,000 employment opportunities inclusive of both high-paying jobs as well as support staff with good salaries. New York would also benefit from increased rate of economic growth from the indirect businesses created from the daily operational activities of the firm with its stakeholders. The real estate industry would also benefit from the influx of other business entities, which are in business with Amazon and thus taking advantage of the search for office space and housing for staff. New York’s university and college graduates also stood to gain from the firm’s recruitment of employees with technical expertise such as coding as well as social sciences such as human resources management. However, New York and especially the Long Island city would face various challenges or demerits upon the successful development of the headquarters. Among the demerits i...