Marketing economies, Microeconomics

Marketing Economies:

These are derived from the bulk purchasing of inputs and bulk distribution of outputs. A large firm is able to buy its raw materials in larger quantities. Such bulk purchases enable the firm to obtain discounts and free transportation. It also costs a little more to sell smaller quantities of output as sales cost per cost per unit of output sold tends to fall as the volume of sales increases. Distribution may even be taken over by subsidiary firms. As sales increases, advertising cost per unit sold reduces too. These advantages lead to a fall in per unit cost of production for the large firm.

Posted Date: 1/2/2013 11:43:23 PM | Location : United States







Related Discussions:- Marketing economies, Assignment Help, Ask Question on Marketing economies, Get Answer, Expert's Help, Marketing economies Discussions

Write discussion on Marketing economies
Your posts are moderated
Related Questions
Concept of Stock Replenishment  This concept assumes that stock is always available whether there is demand or not. Consider the demand for constituent items, such as componen


price falls and demand is elstic

Value Added:Value added in a particular stage of production equals value of total output, less the value of intermediate products (comprising raw materials, capital equipment and o





Themes of Microeconomics ?? As per Mick Jagger & the Rolling Stones, “You can’t always get what you want”. Why Not?          ?? Restricted Resources          ?? Infini

assingnment on production cost