Economies of common services, Microeconomics

Economies of Common Services:

Through the concentration of firms in a particular industry in a given geographical location, the firms may enjoy certain commonservices.These services include special transport and telecommunication facilities, water, power, publication of trade journals with news and articles of special interest to the firms as well as even special treatment from bankers. Also, a well-organised industry may enjoy excellent marketing arrangements through which it can buy raw materials and sell finished products. All these lead to a lower per unit cost of output in the industry.


Economies of Research and Development:

Another advantage enjoyed by firms in well-organised industry relates to research and development activities. The industry or other institutions may provide these research activities with the result being made available to the firms in that industry. This lowers per unit cost of output produced in the industry.

Posted Date: 1/2/2013 11:48:17 PM | Location : United States







Related Discussions:- Economies of common services, Assignment Help, Ask Question on Economies of common services, Get Answer, Expert's Help, Economies of common services Discussions

Write discussion on Economies of common services
Your posts are moderated
Related Questions
Total cost curve (TC) is obtained by adding up vertically total fixed cost and total variable cost curves because the total cost is sum of total fixed cost and total variable cost

Current Daily Status(CDS): The reference periods (i.e. a year, a week and a day) are basically used to describe the period for which the workers are employed in the economy. T

Labour Extraction: Most employees under capitalism are paid according to time they spend at work. Though employers then face a challenge to extract genuine labour effort from their

illustrate and explain the changing demand gor big Mac using the indifference curves and budget line

They take deposits which mean borrow money and make loans which means lend money. The interest rate they pay on the deposits is less than the interest rate they charge on their loa

Assume that the market for lamb is perfectly competitive. Using an appropriate model (or models) illustrate and explain a. How a competitive market arrives at equilibrium

An economy can produce a maximum of either 28 million tons of wheat or 7,000 automobiles, or various intermediate quantities, as depicted in the table below:

graphical illustrations describing the influence of an increase in immigrants on the market supply of labour

Project requirements: Refer to Table and answer the following questions for EACH organism listed above. Word requirements are outlined for each question - this represents a minim

1) What are the most important challenges that economists try to address? (2) What is the role of government in a market based economy?  (3) Who are the main economic players