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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 interchangeably. They explain what happens as the scale of production increases. Economies of scale and diseconomies of scale refer to an economic property of production that affects cost, if quantity of all input factors by some amount is enhanced. If costs increase proportionately, there are no economies of scale; if costs enhance by a greater amount, there are diseconomies of scale; if costs enhance by a lesser amount; there are positive economies of scale. When combined, economies of scale and diseconomies of scale lead to ideal firm size theory, which states that per-unit costs reduces until they reach a certain minimum, then enhance as the firm size increases further.
Policy: Post-Communism Demolition of the Berlin Wall and take-down of the Iron Curtain hasn't significantly improved the situation in what are optimistically and euphemisticall
The very name of this market type suggests that it is a combination of the monopoly and competitive firms. The characteristics of such a market are: 1. There exists large n
Protection of infant firms: Infant industries are those firms, which are young. The absence of economies of scale to them makes their unit cost of production higher than older
Elasticity of Demand This is a measure of how responsive the sales volume of goods is to changes in that product's price, equal to the marginal change in sales, divided by the
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What is third degree price discrimination? Explain with case analysis,give two successful & unsuccessful cases of 3rd degree price discrimination.
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Telecommunications industry in South Africa
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