Illustrate about pecuniary economies, Managerial Economics

Assignment Help:

Q. Illustrate about Pecuniary economies?

Pecuniary economies (which is monetary economies) are those economies accrued by the firm from paying lower prices for the factors used in distribution and production of the product because of bulk buying by the firm. They add to the firm on account of discounts it can attain because of its large scale production. They decrease the money costs of the factors for a particular firm.

Pecuniary economies are realised by a firm in the following ways:

  • The firm would be able to get raw materials at lower prices owing to bulk buying.
  • A large firm can get funds at lower cost which is at a lower rate of interest because of its reputation in the money market.
  • The large firm may be given lower advertising rates if they advertise at large.
  • Transport rates can be also low if the amount of commodities transported is large.

 


Related Discussions:- Illustrate about pecuniary economies

Meaning of desire for a commodity, Desire for a commodity This validat...

Desire for a commodity This validates that a want or a desire doesn't develop into a demand except it is supported by the ability and willingness to acquire it. For example, a

What is the demand function, What is the demand function It should be n...

What is the demand function It should be noted that by demand function, economists mean entire functional relationship which is the whole range of price-quantity relationship a

Short run production function, Explain the short-run production function wi...

Explain the short-run production function with one variable input with the help of assumed figures. Clearly indicate the three stages of physical product, using table and graphs.

Waste in imperfect competition, WASTE IN IMPERFECT COMPETITION Monopol...

WASTE IN IMPERFECT COMPETITION Monopolistic competition involves some degree of waste in two aspects. When new firms enter the industry and the demand for the individual fi

Objectives of imf, Objectives of IMF To achieve these objectives, the ...

Objectives of IMF To achieve these objectives, the following conditions would have to be fulfilled: - i.            Countries should not impose restrictions in their trade

Law of association, the benefits of exchange in the light of the law of ass...

the benefits of exchange in the light of the law of association, the introduction of money in direct exchange and way income gets distributed among market participants

Price elasticity at terminal points, Price Elasticity at Terminal Points ...

Price Elasticity at Terminal Points The price elasticity at terminal point N equals 0 means that at point N, e = 0. At terminal point M, although, price-elasticity is undefined

Eco, distinguish between industry demand and firm company demand

distinguish between industry demand and firm company demand

the occupancy rate of the hospital, In 2006, a hospital with 130 beds had ...

In 2006, a hospital with 130 beds had 8,795 admissions. The average length of stay?for every patient was 4.7 days. Assuming full capacity is 100 percent, detremine the occupancy ra

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