Reason why there are economies of scale

Assignment Help Business Economics
Reference no: EM13898619

Which of the following is NOT a reason why there are economies of scale?

a) spreading fixed costs, such as depreciation and debt service over more units

b) finding process advantage by dedicating resources to individual products

c) increased construction costs by building smaller facilities

d) better bargaining position and quantity discounts on purchased materials

Reference no: EM13898619

Questions Cloud

Nondiscriminatory basis versus discriminatory basis : How can trade liberalization exist on a nondiscriminatory basis versus a discriminatory basis? What are some examples of each?
About the pricing strategies : Classify each of the following pricing strategies and explain. A local restaurant offers an "all you can eat" salad bar for $3.49. With any sand which, a customer can add the "all you can eat" sales bar for $1.49.
Project have a positive or negative rate of return : Does the following project have a positive or negative rate of return? Show how this is known to be true.
Minimum wage in illinois is increased : Assume that the minimum wage in Illinois is increased. Carefully explain what will happen to the market for McDonald's Quarter Pounders. What do you believe will happen to consumer and producer surplus? Explain.
Reason why there are economies of scale : Which of the following is NOT a reason why there are economies of scale?
Actions need to be instituted to become price-making firm : The objective is to fully explain why the company has been successful and will continue to be an effective price maker or if your firm is not a price maker, what actions need to be instituted to become a price-making firm.
How much interest is payable each year : How much interest is payable each year on a loan of $1000 if the interest rate is 9% per year when half of the loan principal will be repaid as a lump sum at the end of 3 years and the other half will be repaid in one lump-sum amount at the end of 6 ..
Deciding between the purchases of two cars : Suppose you are deciding between the purchases of two cars: the $21,545 Ford Escape or the $25,740 Ford Escape Hybrid. The vehicles are essentially identical except the Hybrid gets 34 mpg while the regular Escape gets 24 mpg. a) If you drive 15,000 m..
A competitive firms cost of production : A competitive firm’s cost of production is C(Q) = Q^3-20Q^2+125Q. The firm’s problem is to choose the value of Q> or = 0 that maximizes its profit.

Reviews

Write a Review

Business Economics Questions & Answers

  The entire principal of the borrowed amount

The entire principal of the borrowed amount of $10,000 will be repaid in 2 years. However, the quarterly interest of $330 must be paid every 3 months. Find the nominal annual interest rate (always, rate/yr) that you are paying.

  Explain your rationale and support it with specific examples

Consider the types of non-tariff trade barriers and determine which has the most detrimental effect on the U.S. economy from the standpoint of the domestic consumer. Explain your rationale and support it with specific examples.

  Concepts to weigh the pros and cons of the alternative paths

What policy towards the automakers should we pursue? Should government leaders have provided outright grants to struggling automakers; what about more loans or loan guarantees? Concentrate on using your managerial economics knowledge, tools, and conc..

  Monopolists-a monopoly and barriers to entry

A monopolistically competitive market consists of __________ seller(s), an oligopoly consists of __________ seller(s), and a monopoly consists of one seller. Monopolists:  A monopoly: Barriers to entry:

  Demand decreases and supply is constant

How will each affect equilibrium price and equilibrium quantity in a competitive market? Will price and quantity rise, fall, or be unchanged? Based on the magnitudes of the shifts, will the answers be indeterminate?

  Draw graph depicting the budget set-label the axes

A student has a budget of $200 for their meals outside of the home per week. One possibility is purchasing a meal at a restaurant, which we will call x1, and which costs $20, and a second possibility is purchasing a meal at the school cafeteria, x2, ..

  What impact would you expect this increase in the gap

What impact would you expect this increase in the gap in living standards between the richest and poorest to have on income elasticity today? Briefly discuss.

  What is the marginal revenue product

Demand curve is P=41-Q/100 cost of labor is L= 10. The profit in function is Q=10L. What is the marginal revenue product?

  Exporting-importing and countertrade

Identify what FIDO stands for and how 3M puts FIDO into practice. Assess whether FIDO’s approach could work for other companies or if it is unique to 3M and the products they produce. Write three pages on whether 3M’s specific practice of hiring loca..

  Effects of an increase in business investment

Elucidate the effects of an increase in business investment on the short-run macroeconomic equilibrium.

  Calculate the change in producers surplus

Consider a market characterized by the following demand and supply curves: Qd = 1600 - 20p and Qs = - 900 + 30p.  If regulators decide to restrict payments by setting a price ceiling equal to $35, how many units will be sold or bought? Calculate the ..

  Do you think this firm enjoys much market power explain

A firm has $1.5 million in sales, a Lerner index of 0.57, and a marginal cost of $50, and competes against 800 other firms in its relevant market.

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