Minimum Efficient Scale
The concept explains the important difference between a high and low MES value for market entry. It uses case study examples to illustrate MES in practice and highlights the various strengths and weaknesses of the concept. The concept also outlines the basic steps for estimating MES.
Technique Overview
Minimum Efficient Scale Definition
Minimum efficient scale (MES) is the minimum quantity of output at which internal economies of scale are fully exploited (McEachern, 2010).
Minimum Efficient Scale Description *
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Business Evidence
Strengths, weaknesses and examples of Minimum Efficient Scale *
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Business Application
Implementation, success factors and measures of Minimum Efficient Scale *
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Professional Tools
Minimum Efficient Scale videos and downloads *
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Further Reading
Minimum Efficient Scale web and print resources *
Minimum Efficient Scale references (4 of up to 20) *
- Audretsch, D.B., 1995. Innovation and industry evolution. MIT Press.
- Bain, J.S., 1951. Relation of profit ratio to industry concentration: American manufacturing 1936-1940. Quarterly Journal of Economics, 65, pp.293-324.
- Bourdet, Y., 1988. International integration, market structure, and prices. Routledge.
- Crandall, R.W., 1981. The U.S. steel industry in recurrent crisis: policy options in a competitive world. Brookings Institution.
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