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Economies of Scale and Diseconomies of Scale (Essay Sample)


Explain the merits and demerits for New York to have Amazon’s second headquarter in Long Island City. As you know, Amazon’s plan to open a new second headquarter in Long Island City failed. What could Amazon have done differently in order to make their plan successful? Explain your plan and explain how your idea is different from Amazon’s original plan. (Does your plan give more benefits and less demerits to New York compared to Amazon’s original plan?) Submit a two-page report (in Word) to the Blackboard under Assignments. No late submission will be accepted. I will give you 1% point for the submission of your original essay, not a copy from somewhere or someone's notes. I will not deduct points for spelling and grammatical errors. I will give you zero point if your report is apparently written by someone else. There is no right or wrong answer. I want you to think about this problem and write an essay in your own words.


Economies of Scale and Diseconomies of Scale
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

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