Large scale production refers to the manufacturing of goods in high volume, typically by sizable companies utilizing significant resources.
Based on the provided reference, large scale production can be precisely defined and understood through its key characteristics:
Understanding Large Scale Production
Large scale production is fundamentally about manufacturing a commodity in significant quantities. According to the reference, it specifically means:
- Production of a commodity on a large scale with a large sized firm. This highlights that it's not just about volume, but also the size and structure of the business undertaking the production. Large firms often have the organizational capacity and resources required for extensive manufacturing operations.
Key Requirements
Undertaking production on a large scale involves substantial resource commitment. The reference states:
- It requires huge investments in plant and machinery. This is a critical factor differentiating large scale production from smaller operations. Significant capital is needed to acquire the necessary industrial equipment, facilities, and technology capable of high-volume output.
Market Conditions
The viability of large scale production is also contingent on market demand. The reference notes:
- Large scale production can be carried out if the market size is large and expanding. Producing vast quantities of a product only makes economic sense if there is a sufficiently large and growing consumer base willing to purchase the commodity. A small or stagnant market would quickly become saturated, making high-volume production unsustainable.
In summary, large scale production, as described, is a high-volume manufacturing process conducted by substantial firms, necessitating considerable capital investment in infrastructure and machinery, and is viable primarily when serving a substantial and growing market.
