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
how to solve major economic problem as a computer engineer

THEORY OF DEMAND: The  consumer behaviour under indifferencecurve approach where it is assumed that the consumer possesses a utilityfunction. The next most important theory th

REAL BUSINESS CYCLE THEORY: The parable that motivates this discussion originated with Edmund Phelps and invites you to think that all men (and women) are islands. They have p

Determine the Cross Elasticity of Demand Measures the responsiveness of demand for good A to a given change in the price of good B. It is an significant piece of information to

(ii) Find a real-world example of second-degree price discrimination. Describe the important aspects of your example in detail and analyze it using economic theory. In particular,

what are the merits and demerits of deductive inductive methods in economic analysis?

Frictional and Cyclical Unemployment: Frictional Unemployment: It refers to unemployment caused by changes in individual labour markets. This is the type of unemploymen



A market is nothing more or less than the locus of exchange, it is not of necessity a place, but easily buyers and sellers coming together for transactions.   Transactions happen