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Bulk increasing business increases the weight or volume of the final product compared to the size or weight of the inputs used. For example, if we produce juice concentrates from Oranges then we are in bulk reducing business. As we took a lot of oranges to produce a relatively little amount of powder. However, if we use the juice concentrate to product bottles or cartons of fruit drinks then we are in bulk increasing business. The water as a raw material is identical in input and output but the volume of glass and paper has definitely increased. Another example of bulk-increasing business will be furniture as the size of a chair is far bigger than the piece of wood being used to manufacture it.
Wiki User
∙ 12y ago
Carlos A. Sirlupu
increases the weight or volume of the final product
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