I suspect that the basis for Alejandro's claim is not empirical but is rather
based on the presumption of optimality, i.e. that there is an 'optimum' scale
for labor, means of production, and managent inputs beyond which there are are
diseconomies of scale. It seems to me that there are better ways to envision
bureaucratic inefficiencies associated with excessive management than through
the assumption of optimality.
In solidarity, Jerry
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Received on Sat Jun 5 06:46:19 2010
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