Internal and external economies of scale, Microeconomics

Internal and external economies of scale:


Internal economies of scale are the advantages or benefits that the firm enjoys as it expands its size or increases its scale of operation. These may result from technical, financial, managerial, marketing and welfare advantages enjoyed by the firm and are as such said to be firm specific. External economies of scale on the other hand, are advantages or benefits gained by a firm, as the industry in which it operates grows larger.An industry grows when the number of firms constituting the industry increases. These advantages are in the form of availability of cheaper inputs like skilled labour, common services and research.

Posted Date: 1/2/2013 11:41:34 PM | Location : United States







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

Write discussion on Internal and external economies of scale
Your posts are moderated
Related Questions
Labor cannot be divided from the human being who provides it.  The result of the inseparability of labor from the people who gives it, is that the wage for the last hour worked mus

List two advantages of markets identified by the authors of the text. Markets can be a significant way of allocating resources.  Markets include voluntary exchanges.  Another b

advantages and disadvantages

Explain the term Fordism Between approximately 1890 and 1930-or perhaps 1890 and 1950-a host of innovative technologies and business practices were adopted in the US. Europeans

A potential investment project has the following stream of annual social (benefits minus costs), where you may assume the project starts with the capital payment of $12,000 on Day

Industrial Policy: Government policies which are aimed at fostering the domestic development of particular desirable or productive industries, in order to enhance productivity, cre

Stock of durable goods on hand: If the economy has enjoyed an extended period of prosperity, consumers may find themselves well supplied with various durable goods, e.g. cars,

Determine the indirect utility function in brief. Indirect Utility Function: The ordinary utility function, u(x), is described over the consumption set X and thus to as the

Determinants of Social Demand for Education - Excellence Apart from the three considerations identified by Prof. Musgrave for public investments in education and discussed abo

Why government cannot print new currency to pay the debts?  When there is deficiency of internal resources then government borrow. Government can borrow either from central ban