It has not reached the point where Marginal Revenue = Marginal Social Costs and therefore has not reached Diminishing Marginal Returns as it is still experiencing Economies of Scale.
Microsoft Bing's main fixed costs are land and capital. According to Betsy Aoki of Microsoft, Bing is just starting up and office expansion won't happen soon. We know that Bing's labor is increasing because they need more workers in order to advance their researches in areas such as technology...this is done so they can 'catch up' or get ahead in the search engine industry.
Ex. computer engineering- Microsoft needs more computer engineers to do research in order reach their goal of providing the most relevent search results in comparison to other search engines with high concentration ratios- in otherwords, Bing needs more workers to help product differentiate, which will help them gain more customers and Bing users.
Notable points
Efficiency
Microsoft Efficiency involves Specialization. According to Betsy Aoki, Senior Program Manager Audience Public Relations of Microsoft, Bing is broken into team arrangements...
Microsoft engineering teams are broken into devlopers, testers, and program managers, with layers of management above them. Also included engineering is UX (user experience) which incorporate things such as designing web pages and doing usability studies.
"Web feature teams are usually cross-discipline teams. So you might ahve a tester, developer and a program manager assigned to build one small part of Bing.
"Most Marketing teams are organized by marketing function-media buying, corporate communications, etc. There are also business development, legal and PR teams generally associated with Microsoft products."
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