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Marketing Economies:
These are derived from the bulk purchasing of inputs and bulk distribution of outputs. A large firm is able to buy its raw materials in larger quantities. Such bulk purchases enable the firm to obtain discounts and free transportation. It also costs a little more to sell smaller quantities of output as sales cost per cost per unit of output sold tends to fall as the volume of sales increases. Distribution may even be taken over by subsidiary firms. As sales increases, advertising cost per unit sold reduces too. These advantages lead to a fall in per unit cost of production for the large firm.
What are economies of scale and diseconomies of scale? In economics, returns to scale and economies of scale are terms that are related and sometimes incorrectly used intercha
Economists view depreciation as capital consumption for them, there are two distinct ways of charging for depreciation (1) the depreciation of equipment must equal its opportunity
need to get assignment on income effect and substuation effect how does increase in price of both comodity will affect the or show the new effect
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A Period of Transition and Improvement: These few years stand out as the golden years for India's BOP. India had a small current account surplus (0.6 per cent of the GDP on an
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How we constract the cost structure of firms
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Rationale for government intervention There are six major functions the government can perform in an economy. 1. The government provides a legal and social framework within which
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