Define economies of scale, Microeconomics

Q. Define Economies of Scale?

Economies of Scale: Most economic production requires producing firm or organization to make an initial investment (in real capital, in design andengineering, in marketing) before even first unit of production takes place. As total production then grows, cost per unit of that initial investment shrinks. For this reason, most industries exhibit economies of scale, whereby unit cost of production declines as the level of output grows. Due to economies of scale, larger companies have an advantage in most industries and economy typically operates more efficiently when it's busy and growing (than when it is shrinking or stagnant).

Posted Date: 8/26/2013 1:22:15 AM | Location : United States







Related Discussions:- Define economies of scale, Assignment Help, Ask Question on Define economies of scale, Get Answer, Expert's Help, Define economies of scale Discussions

Write discussion on Define economies of scale
Your posts are moderated
Related Questions
Explain how automatic (fiscal) stabilisers may help to lower fluctuations in the business cycle. Definition of automatic stabilisers as built-in to the system in terms of trans

a. Generally, there will be a difference between the CV and the EV. Why? b. The change in consumer surplus (?CS) is not "theoretically" justifiable like the CV and EV but it

prove that marginal utility of x=the price of commodity x.

#how do you draw a demand curve on excel

What does economic theory contribute to managerial economics? Explain

Analyse the strengths and weaknesses of GDP as a measurement. Answer Strengths of GDP as a measurement 1) It helps in making international comparison among different

Example of a cost function

2. Suppose the price of printing paper for digital cameras has recently risen by 10 percent due to an increase in the cost of materials used in the finish for the paper. As a resu

Q. What do you meant by Private Equity? Private Equity: A form of business in which company's entire equity base is owned by one or a small group of individual investors. Under

Q. What is International Monetary Fund? International Monetary Fund: An international financial institution established after World War II with the goal of stabilizing and regu