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The Impact of Microelectronics on Scale in Manufacturing Industries

Author

Listed:
  • S. Markowski

    (Department of Economics and Management, University College, University of New South Wales, ADFA, Canberra.)

  • C. D. Jubb

    (Bureau of Industry Economics, Canberra.)

Abstract

The traditional treatment of economies of scale ignores the complexity of manufacturing processes and is inadequate for an analysis of the impact of technological change. Complexity in manufacturing processes results, inter alia, from the multi-product capabilities of production facilities and the need to control the production of several outputs. This aspect of production activity must be addressed if the economics of diffusion of microelectronics-based technologies is to be studied. This paper examines the sensitivity of cost functions to changes in the characteristics and utilisation of production facilities and discusses the impact of microelectronics on scale, scope and scheduling flexibility of manufacturing facilities.

Suggested Citation

  • S. Markowski & C. D. Jubb, 1989. "The Impact of Microelectronics on Scale in Manufacturing Industries," Australian Journal of Management, Australian School of Business, vol. 14(2), pages 171-210, December.
    • Handle: RePEc:sae:ausman:v:14:y:1989:i:2:p:171-210
    DOI: 10.1177/031289628901400204
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    References listed on IDEAS

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    1. Kym Anderson, 1980. "The Political Market for Government Assistance to Australian Manufacturing Industries," The Economic Record, The Economic Society of Australia, vol. 56(153), pages 132-144, June.
    2. Baumol, William J, 1977. "On the Proper Cost Tests for Natural Monopoly in a Multiproduct Industry," American Economic Review, American Economic Association, vol. 67(5), pages 809-822, December.
    3. Anderson, Kym, 1980. "The Political Market for Government Assistance to Australian Manufacturing Industries," The Economic Record, The Economic Society of Australia, vol. 56(153), pages 132-144, June.
    4. Stevenson, Rodney, 1980. "Measuring Technological Bias," American Economic Review, American Economic Association, vol. 70(1), pages 162-173, March.
    5. Berndt, Ernst R & Khaled, Mohammed S, 1979. "Parametric Productivity Measurement and Choice among Flexible Functional Forms," Journal of Political Economy, University of Chicago Press, vol. 87(6), pages 1220-1245, December.
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    Cited by:

    1. Ludovico Alcorta, 1996. "Automatización flexible y economías de escala en países en desarrollo," Apuntes. Revista de ciencias sociales, Fondo Editorial, Universidad del Pacífico, vol. 23(39), pages 13-47.

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