Explain what economies of scale are, Microeconomics

Assignment Help:

Explain what economies of scale are and why they have become increasingly common in later years.

Economies of scale - Enhance in fixed factors, but output enhances at a proportionately higher rate than unit costs

  • internal economies of scale

a)  Technical economies of scale - spreading of fixed costs, improved use of capital

b)  Managerial economies of scale - higher efficiency in firms production units by specialisation

c)  Purchasing economies - bulk buying, good customer prices

d)  Marketing economies of scale - advantages of having broad brand-name recognition

e)  Financial economies of scale - larger asset base for security in loans, lower interest

 


Related Discussions:- Explain what economies of scale are

AREC 1, Equation (1) gives a hypothetical demand curve for hybrid vehicles ...

Equation (1) gives a hypothetical demand curve for hybrid vehicles in the United States during the year 2000, where Q is the quantity demanded and P is the price. Equation (2) giv

Externality, When somebody wearing muddy shoes rides a public bus, he impos...

When somebody wearing muddy shoes rides a public bus, he imposes a negative externality on other riders (passengers get some mud rubbed off on them, and the shoes look ugly). If a

Help, 1. Select a data series that you wish to forecast. Make sure that it ...

1. Select a data series that you wish to forecast. Make sure that it has some importance to you relative to business, future occupation or other special interest. Obtain monthly or

Market competition., explain why policies for promoting market competition ...

explain why policies for promoting market competition are desireable

Iso cost, schedule and diagram of iso cost

schedule and diagram of iso cost

What is economics, What is Economics?  Economics is explained as the s...

What is Economics?  Economics is explained as the study of how people choose to use their scarce resources in an attempt to satisfy their unlimited wants. In other words, we h

MS6012 A01, Analyze the sustainable approach to waste reduction developed b...

Analyze the sustainable approach to waste reduction developed by the company you selected. Include the following: Its products Previous methods of production The way it implemented

Consumer surplus, using necessary and sufficient condition explain consumer...

using necessary and sufficient condition explain consumer surplus diagrammically and mathematically?

Write Your Message!

Captcha
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