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
Demand Function is Homogeneous of Degree Zero: Mathematical PresentationĀ  we will show that demand function is homogeneous of degreeĀ zero in prices and money income. In o

COST benefit analysis Costs that are applicable in the project and the benefits that are associated with it are as follows: Risk occurs at different levels. It takes pl

When is the economic theory useless? One misunderstanding is to under-estimate the role of an economic theory. Several people thought an economic theory useless since they thin

is country beter off with ban on imports?


The Equilibrium Consumption Combination equilibrium for the person occurs at the point where the indifference curve, shown by II, is tangent to the budget line, portrayed by BB. T

a) Microeconomics is concerned with decision-making within the firm, household or on the individual level, but macroeconomics is concerned with the behavior of the whole economic s

Transactions demand for money: Transactions demand for money represents cash balances held by economic agents in order to carry outordinary everyday transactions.For example,

regression line drawn as Y=c+1075x, when x was 2 and y was 239, given that y intercept was 11. calculate the residual

Insurance - Risk averse are willing to pay to keep away from risk. - If cost of insurance equals expected loss, risk averse people will buy sufficient insurance to totally r