Capital intensive operations, Microeconomics

Assignment Help:

Where minimum efficient scale is very huge for capital intensive operations, it may be more cost effective to allow one company to spread its fixed costs over a very huge number of consumers, rather than have various competing firms suffer the fixed costs of a minimum efficient scale and have to share a customer base.   There are various industries that are very capital intensive and need large initial investments to operate.  These types of firms are frequently natural monopolies.  Railroads, electric generating companies, and air lines needs tens of millions of dollars in fixed costs.

 


Related Discussions:- Capital intensive operations

Loanable funds and supply of loanable funds, Another school of thought deve...

Another school of thought developed what is called loanable funds theory of interest. Among the principle economists who contributed to the development of loanable funds theory men

Use a ppf to explain the trade-offs that all economies face, Use a PPF to e...

Use a PPF to explain the trade-offs that all economies face. All countries must construct some sort of system whereby output, allocation and distribution of goods is decided.

What are advantages of using mathematics in modern economics, What are the ...

What are the advantages of using mathematics in Modern Economics? Many of the advantages of using mathematics are as follows: a. The “language” used and the explanations of

Consumer''s eqillibrium, a consumer consumes only two goods x and y is in e...

a consumer consumes only two goods x and y is in eqillibrium price of x falls explain the reaction of consumer through utility analysis

Salesmaximisation, fig2.3 elaplanition of sales maximisation

fig2.3 elaplanition of sales maximisation

Manpower-population ratios, Manpower-Population Ratios In this techniq...

Manpower-Population Ratios In this technique, manpower will not be planned for the economy as a whole. It will be planned for sectors or sub-sectors of an economy. For instanc

#Monopoly, How to prepare an assignment of Monopoly in economics#Minimum 10...

How to prepare an assignment of Monopoly in economics#Minimum 100 words accepted#

Calculate wi’s cost of debt and wacc, 1.    Introduction Wood Investm...

1.    Introduction Wood Investments (WI) is a private equity fund that specialises in the leveraged acquisition of publicly-quoted companies with the intention of producing h

Economic profit and economic loss, Economic profit and Economic loss: ...

Economic profit and Economic loss: Economic profit is the excess if total revenue over total cost when the latter includes both explicit and implicit costs. It is the type o

Economies of scope, Economies of Scope The ability of a organizati...

Economies of Scope The ability of a organization to decrease its unit costs by producing two or more products or services that involve complementary skills, experience and

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