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
Economic Ef ficiency The effort to making products and services in the least costly way without sacrificing excellence.

1. Suppose that there is a credit market imperfection because of asymmetric information. In the economy, there are N consumers. A fraction b of consumers consists of lenders, who e

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


solution for calculate price elasticity of demand for demand function Q= 10 - 2p for decrease in price from Rs. 3 to Rs.2..

Explain the monopolistic competition model of equilibrium with price competition under chamberlin s model

Normal 0 false false false EN-IN X-NONE X-NONE MicrosoftInternetExplorer4

Describe Dalton''s law of partial pressures, specification of Dalton''s law of partial pressures, Dalton''s law states that, at a given known temperature total pressure exerted b

could a nations production possibilities curve ever shift inward

How has the Harberler''s theory of opportunity cost an improvment over the classical theory of trade?