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Q. What is Internal Diseconomies of Scale?
Internal economies of scale exist only up to a certain size of the plant. Size of plant is called the optimum plant size since with this size of plant all possible economies of scale would be fully exploited. If the size of plant increases beyond this optimum size there arise diseconomies of scale (which implies decreasing returns to scale) especially from managerial diseconomies. It is claimed that technical diseconomies can be avoided by duplicating the optimum technical size of the plant.
Consider a manufactured good whose production process generates pollution. The annual demand for the good is given by Qd=100-3P. The annual market supply is given by Qs=P. In both
agency problems between shareholders and government
Explain the Theory of Production Cost and Production analysis is central for the unhampered functioning of the production process and for project planning. Production is an e
Importance of Cross Elasticity Knowledge of cross elasticity is necessary when the government wants to impose a tariff on an imported commodity to protect a domestic industry.
THEORY OF COMPARATIVE ADVANTAGE In his theory put forward in a book published in 1817, David Ricardo argued that what was needed for two countries to engage in international t
what is profit planning?
In a one-shot game, if you advertise and your rival advertises, you will each earn RM5 million in profits. If neither of you advertises, your rival will make RM4 million and you w
INDIRECT TAXES These are imposed on an individual mostly producers or traders but they can be passed on to be borne by others usually the final consumers. They can also be de
The acme paper company lowers its price of envelopes (1000 count) from $6to $5.40.
points and its explanation
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