Explain what causes economies of scale

Assignment Help Microeconomics

Reference no: EM13525980

1. Suppose you attend a meeting at work to discuss whether to change the price of your product. You think demand is elastic, but a colleague thinks it is inelastic. Does it matter whether demand is elastic or not? Explain. Is it possible that you are both right? Explain.

2. In a meeting about whether to store inventory in a company-owned warehouse or rent a warehouse, a colleague says, "We should use our own warehouse and save the cost of renting one." Do you agree or disagree? Explain.

3. Explain what causes economies of scale. Can economies of scale and diminishing marginal returns apply to the same firm? Explain.

4. State the law of diminishing marginal utility. What does this law have to do with explaining consumer behavior? What is consumer surplus? How is consumer surplus related to the law of diminishing marginal utility?

5. Explain why demand is more elastic in the long run than in the short run.

Reference no: EM13525980

Questions Cloud

How does the quantum dot bind to the antibodies : How does the quantum dot bind to the antibodies and outline how semiconductor quantum dots coated with strands of DNA can self-assemble into a variety of structures

Determine how far does it move horizontally : A carpenter tosses a shingle horizontally off an 8.8m--high roof at 8.0m/s , How far does it move horizontally

What is the magnitude of the velocity of the projectile : A projectile is fired from point 0 at the edge of a cliff, with initial velocity components of v0x=60 m/s and v0y=175 m/s, What is the magnitude of the velocity of the projectile 21.0s after it is fired

Define how much water is in the solution : A solution is 9.60%(w/w) and contains 25.0 gm of salt. How much water is in the solution, and what would be a reasonable estimate of volume of solution

Explain what causes economies of scale : Explain what causes economies of scale and can economies of scale and diminishing marginal returns apply to the same firm? Explain.

Find how far does the vehicle move from start to stop : An electric vehicle starts from rest and accelerates at a rate of 1.8 m/s2 in a straight line until it reaches a speed of 18 m/s. How far does the vehicle move from start to stop

Explain how to tell what chemical is acid and what is base : Does anyone want to attempt to explain to me in very simple terms how to tell what chemical is acid and what is base in such formula's as SO2 + CaO --> CaSO3 Or Al(OH)3 + OH- ---> Al(OH)4-

Calculate the heigth of the table top above the floor : A physics book slides of a horizontal tabletop wit a speed of1.10m/s. it strikes the floor in 3.50s ignore air resistance. calculate the heigth of the table top above the floor

What is the surface charge density on the ground : On days of fair weather, the atmospheric electric field of the Earth is about 116 N/C; What is the surface charge density on the ground

User Account

All Pages