Economies of scale - lesson idea
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Here’s a lesson resource that could certainly make waves for you as a way of illustrating economies of scale…
The recently launched Oasis of the Seas takes ocean cruising to a new level of capacity and scale. This excellent infographic from the Economist would be a good way of providing students with some comparative data on the new cruise ship compared with some of its main competitors.
What cost advantages does the stunning scale of the ship offer customers and the operator Royal Caribbean? Are there potential diseconomies of scale - given the complexity of the operation in involved and the number of staff that need to be managed?
Built by Royal Caribbean at a cost of more than £800m, it can carry more than 6,000 passengers and will have a crew of more than 2,000.
It includes a 750-seat Greek-style amphitheatre, a shopping mall, an ice rink, a 1,300-seat indoor theatre and an open-air park with real trees and plants.
You could also show this BBC video which takes you on a brief behind-the-scenes tour of the ship
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