Is Big Better? Economies of Sail

This might just be the best example of economies of scale to use with students.

Maersk, the Danish giant shipping line company, has just launched the biggest container ship ever made.

The 'Majestic Maersk' is big and has huge capacity to transport products along the world's busiest shipping lanes. It can transport 18,000 20ft-long containers. Fully-loaded, that would be enough to ship 180 million iPads or a 114 million pairs of Nike trainers.

This ship can carry more but using the same fuel as existing container ships. That should mean lower unit transport costs along the crucial shipping routes between Asia and Europe.

The shipping industry is plagued by over-capacity and international trade remains weak after the global economic downturn. However, Maersk is investing heavily in these new shipping beasts in the hope of gaining long-term competitive advantage over its rivals.

A great example of how to think big!