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
Entrepreneur: The entrepreneur or enterprise is a special factor of production that is in charge of the organization of the other three factors of production (land, labour and

Suppose the total demand for wheat and the total supply of wheat per month in a market are as follows: a. What will be the market or equilibrium price? What is the equilibrium q

Q. What do you meant by Relative Poverty? Relative Poverty: A measure of poverty based on an individual or family's relative income compared to overall average level of income

Consider a person''s decision problem in trying to decide how many children to have. Although she cares about children and would like to have as many as possible, she knows that ch

The following are AC and TC functions for various firms (i). AC = 140/Q + 20 (ii) AC - a/Q = k (iii) TC - 10 =2Q + 0.1Q 2 (iv) TC - k - βQ = cQ 2 Where a, k, β and


8,000,000 people in the population who are 16 yrs of age and older. 80% are willing to work. Currently 10% unemployment rate. a. how many people in labor force? b. How many are un

Q. Defien Hyper - Inflation? Hyper-Inflation:It's a situation of extremely rapid inflation (reaching 100% per year or more), frequently resulting from a condition of political

how to solve major economic problem as a computer engineer

(a) Give an overview of the Concept of Land Economic (b) Provide a definition of Land/Economics (c) Discuss the origin of Land Economics (d) Modern and Traditional Land Ec