Firm Size,Economies of Scale and Industrial Clusters

There have been conflicting opinions concerning issue of firm size.The reason for the conflict is that firm size is a vague conception,which might be interpreted differently from different perspectives.Firm size that has the economic significance need to be measured from two intersecting dimensions,namely,horizontal and longitudinal firm sizes.Economies of scale result from the expansion of horizontal firm size,while the longitudinal expansion may bring about diseconomies of scale.Industrial clusters are good samples for the observation of horizontal and longitudinal size.Distinguishing the natures of firm size will offer a lucid approach for some theoretical problems about economies of scale.