Managerial economics Many administrative and organizational activities are mostly cognitive and, therefore, largely independent of the scale of production. shows how these economies of scale in the acquisition of specialized knowledge play an essential role in the existence of the company. When the size of the company and the division of labour increase, there are a number of advantages due to the possibility of making organizational management more effective and perfecting accounting and control techniques. Furthermore, the procedures and routines that turned out to be the best can be reproduced by managers at different times and places.
mAnaGeriAl econOMiCs many Administrative aNd organiZationaL ActIvitIeS aRe mosTly coGNItiVe AnD, tHerefore, laRgELY indePEnDent OF The scAle Of proDuCTIOn. shows how tHEsE ecONOmIes of Scale in the acqUisiTIon oF SpecialIzEd knOwLedGE plaY an esSentIAl RolE iN THe existence of The cOMPany. wHEn thE sizE Of The ComPany aNd tHe divIsion Of laBOuR increaSE, tHere arE a number of aDvAntAGeS dUe to the POssiBILity Of MakinG organIzationaL ManAGeMEnT morE EFfecTive aNd PerfeCting AccountiNG And Control tecHnIqueS. fUrthErmore, tHe pRoceDuRes and rouTIneS tHat turneD oUt to be THe best cAn bE reprOduceD by manageRs AT DiFFerEnT Times and pLaces.