What is internal diseconomies of scale, Managerial Economics

Assignment Help:

Q. What is Internal Diseconomies of Scale?

Internal economies of scale exist only up to a certain size of the plant. Size of plant is called the optimum plant size since with this size of plant all possible economies of scale would be fully exploited. If the size of plant increases beyond this optimum size there arise diseconomies of scale (which implies decreasing returns to scale) especially from managerial diseconomies. It is claimed that technical diseconomies can be avoided by duplicating the optimum technical size of the plant.


Related Discussions:- What is internal diseconomies of scale

Function of money markets, Function of Money Markets The money markets...

Function of Money Markets The money markets are the place where money is "wholesaled".  As such the supply of money and interest rate which are of significance to the whole ec

What do you mean by oligopoly, Q. What do you mean by Oligopoly? Type o...

Q. What do you mean by Oligopoly? Type of market condition that is most appropriate in the today's economy, is oligopoly. It's characterised by mutual interdependence among a f

Market demand and consumers surplus, Market demand and consumers surplus ...

Market demand and consumers surplus Suppose that the market price of a cup of coffee is K£4 but the consumer was willing to pay £9 for the first unit, £8 for the second, £7 fo

Stable and unstable equilibrium, Stable and Unstable Equilibrium An eq...

Stable and Unstable Equilibrium An equilibrium is said to be stable equilibrium when economic forces tend to push the market towards it.  In other words, any divergence from t

Current account, The Current Account This records all transactions inv...

The Current Account This records all transactions involving the exchange of currently produced goods and services and is subdivided into i.          Visibles: A record

Calculate the marginal costs and output ranges, Assume that input prices ar...

Assume that input prices are constant at r = 1, w = 1, with technology which consists of 5 processes having the following properties: Process Inputs Capital (machine hours)

Advantages of progressive tax, Advantages a.           It is more equi...

Advantages a.           It is more equitable.  The broader shoulders are asked to carry the heavier burden. b.          It satisfies the canon of productivity as it yields

Determine the giffen goods - law of demand, Determine the Giffen goods - la...

Determine the Giffen goods - law of demand An exception to this law is the distinctive case of Giffen goods named after Sir Robert Giffen (1837-1910). 'Giffen goods' doesn't re

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