Production having two outputs - economies of scope, Microeconomics

Production having Two Outputs -Economies of Scope

*  Economies of scope exist when joint output of a single firm is greater than the output which could be achieved by two different firms each of them producing a single output.

* Examples:

-The farm of chicken produces poultry and eggs

- Automobile produces cars and trucks

- University Teaching and research

*  What are advantages of joint production?

-An automobile company producing cars and tractors

* Advantages

 1) Both of them use capital and labor.

 2) The firms share resources management.

 3) Both use the same labor skills and type of machinery.   

Posted Date: 10/12/2012 3:39:33 AM | Location : United States







Related Discussions:- Production having two outputs - economies of scope, Assignment Help, Ask Question on Production having two outputs - economies of scope, Get Answer, Expert's Help, Production having two outputs - economies of scope Discussions

Write discussion on Production having two outputs - economies of scope
Your posts are moderated
Related Questions

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


"Cross-Correlations of output(t) with" "x(t-1)" [3,] "output" "0.3" [4,] "consumption" "0.1

Aggregate Supply When referred to in the circumstance of GNP or GDP, aggregate supply refers to the labor and capital needs to proceeds the level of products and services need

Supply and demand for a given type of MP3 player are given by the following equations: P=980-1.5Qd P=20+0.9Qs

CONSIDER THE DEMAND CUVE Q=100-50P DRAW THE DEMAND CURVE AND INDICATE WHICH PORTION OF THE CURVE IS ELASTIC ,WHICH PORTION IS INELASTIC AND WHICH PORTION IS UNIT ELASTIC

what is the importance of law of supply

plot the demand schedule and draw the demand curve for the data given for marijuana in the case above

The Nature of Policy-Making : It follows that recommending policy must itself be a subjective exercise. The effects of particular-policies at a particular historical juncture