Economies of scale are one of the most powerful forces

Assignment Help Operation Management
Reference no: EM132091670

1. Economies of scale are one of the most powerful forces in economics. Answer the following questions related to this very important principle of economics:

a. Explain how economies of scale are particularly important to a monopolist, be they real (in reality, there are very few examples of monopoly in the real economy) or hypothetical.

b. Building on question (a.) above, in the event that a new competitor decided to enter this otherwise monopolistic market and building on their natural competitive advantage of economies of scale, what would the embedded monopolist do to thwart the new competition?

c. Are there any economic lessons that a non-monopoly firm can learn from the hypothetical monopolist in the development of its own strategy for building a competitive advantage in the real world in which it operates? Explain.

Reference no: EM132091670

Questions Cloud

What are john accounting profits as a toilet producer : a. What are John's accounting profits as a toilet producer? (Show work) b. What are John's economic profits as a toilet producer? (Show work)
Government programs with voluntary contributions instead : What would happen if we eliminated taxes and paid government programs with voluntary contributions instead?
Imagine that the united states imposes a tariff : Imagine that the United States imposes a tariff of $2 on each T-shirt imported. The price of T-shirts in the U.S. would rise by how much?
Explain why an economist would agree : Explain why an economist would agree (or disagree) with this statement.
Economies of scale are one of the most powerful forces : Economies of scale are one of the most powerful forces in economics. Answer the following questions related to this very important principle of economics:
How is production function related to marginal product : How is production function related to marginal product of labor? How is marginal product of labor related to the value of marginal product?
What are the characteristics of a tragedy of the commons : What are the characteristics of a "tragedy of the commons"? Can the emission of greenhouse gases (causing global warming) be framed as a tragedy of the commons?
Free-rider problem occurs for public goods : Why does the free-rider problem occurs for public goods but not for private goods?
What types of government policies can encourage : What types of government policies can encourage people to clean up their neighborhoods?

Reviews

Write a Review

Operation Management Questions & Answers

  Use the transportation simplex to find an optimal solution

Storage Medium Word Processing Packaged Program Data Hard disk 5 4 4 Memory 2 1 1 Tape 10 8 6 a. If the goal is to minimize the total time per month that users spend accessing their files, formulate a balanced transportation problem that can be used ..

  Pay for improvements in health information technology

Why do you think the health care industry has invested less in information technology than the banking industry? Who do you think should pay for improvements in Health Information Technology?

  Explain the theoretical background of both entry modes

Explain the theoretical background of both entry modes and how to enter the international markets.

  Discuss how organizational structure affects effectiveness

Discuss how organizational structure affects effectiveness, efficiency and productivity of an organization.

  Performance appraisal process

Describe the various employment laws that may impact the performance appraisal process and how the organization is attempting to avoid any negative impacts.

  Categories of costs involved in their business process

Financial reports of different firms vary according to the dissimilar categories of costs involved in their business process.

  The minute stop market has one pump for gasoline

The Minute Stop Market has one pump for gasoline, which can service 10 customers per hour (Poisson distributed). Cars arrive at the pump at a rate of 5 per hour

  Identify recommended completion week and savings

There is a £1,000 per week penalty for each week the project is delayed beyond week 25. Indirect costs relevant to this project are £2,500 per week. Identify recommended completion week, and the savings.. Use bullet points to highlight the major bene..

  Analyze the working capital of the organization

Analyze the working capital of the organization. Include whether or not there is sufficient working capital for business operations and explain why.

  How might the organization use mission and vision

conduct an internet search to find an organization that lists its mission and vision statement on its website. what do

  Explain the definition of civility and its importance

For this assignment write a five paragraph essay explaining the definition of civility and its importance in education.

  Discussion of competitive advantage and added value

According to our textbook the discussion of competitive advantage and added value always starts with which three things? In regards to anticipating competitive dynamics one should try to anticipate the moves a competitor might what? Strategists now e..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd