Types of external economies generates the output, Microeconomics

Assignment Help:

What types of external economies generates the output which reduces the costs of the firms in it?

The chief example of external economies provided by marshal are (i) improved methods of machinery which are accessible to the whole industry when it expands (ii) economies which result from the growth of correlated branches f industry which mutually assist one another and being concentrated in the same localities encourage the development of hereditary skill the growth of subsidiary trades supplying it with implements and machinery (ii) economies which are connected with the growth of knowledge and the progress of arts especially in matters of trade knowledge newspapers trades trade and technical publications.

Like marshal Joan Robinson who analyzed the phenomenon of increasing returns (decreasing cost) in the context of partial equilibrium analysis provided the following main examples of eternal economies (i) the cases where the machinery can be bought more cheaply when the industry presents a large market to the machine-making industry and (ii) the case where a large labour force is accustomed to work in a certain trade and develops traditional skill.


Related Discussions:- Types of external economies generates the output

Explain why each of the following factors may influence the, Explain why ea...

Explain why each of the following factors may influence the own price elasticity of demand for a commodity. (i) Consumer preferences, that is, whether consumers regard the commod

Statistics, please can you explainn what "down 0.1 percentage point on the ...

please can you explainn what "down 0.1 percentage point on the quarter means"?

Gross domestic product (gdp), Determine whether the ff is counted as part o...

Determine whether the ff is counted as part of gdp which of the ff statement are included or excluded 1.1A monthly cheque received by an economic stu

Consumer surplus, suppose ismail were to eat five pizzas per week.what is t...

suppose ismail were to eat five pizzas per week.what is the total value ismail would place on his five weekly pizzas?

What is unit labour cost, Q. What is Unit Labour Cost? Unit Labour Cost...

Q. What is Unit Labour Cost? Unit Labour Cost: How much an employer pays for labour needed to produce each unit of a good or service. Unit labour cost can be computed by dividi

Utility maximization, u=2x^2+3y^2 hence income=310 birr and price=3 birr c...

u=2x^2+3y^2 hence income=310 birr and price=3 birr calculate quntity of x and y the optimize&minmize utilityfor the given income

Concept of efficiency, The Concept of Efficiency is stated below: To il...

The Concept of Efficiency is stated below: To illustrate this concept of the efficiency, it is used to expand the understanding of what is meant by the Pareto-efficient allocat

Supply and demand, Suppose scientists discover that eating soybeans prevent...

Suppose scientists discover that eating soybeans prevents cancer and heart disease. What effect would you predict on the price of soybeans?

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