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

Williamson model of managerial discretion, how the equilibrium output and p...

how the equilibrium output and price is determined in williamson model of managerial discretion?

Elasticity, Calculate the price elasticity of demand or supply for the foll...

Calculate the price elasticity of demand or supply for the following function when P=8 p=6(I)p=40-0.5q

Microeconomics, Five identical people live in a small town and can earn a l...

Five identical people live in a small town and can earn a living either by having cattle $100 or by becoming a singer. If one person competes their expected payment is 210, if two

Welfare, what is Scitovsky Contour ?

what is Scitovsky Contour ?

Keynes' theory and expectations, KEYNES' THEORY AND EXPECTATIONS : Expec...

KEYNES' THEORY AND EXPECTATIONS : Expectations played a major role in Keynes' theory of the determination of aggregate output and employment in market economies in the short run

Allocated stock and safety stock - mrp system, Allocated Stock and Safety S...

Allocated Stock and Safety Stock  Allocated stock  A category of stock which ensures that current stock is set aside and not issued under the normal procedure.  Safet

Explain the post-keynesian economics, Q. Explain the Post-Keynesian Economi...

Q. Explain the Post-Keynesian Economics? Post-Keynesian Economics: A modern heterodox school of economic thought that emphasizes more radical or non-neoclassical aspects of Joh

Payroll tax, Q. What do you meant by Payroll Tax? Payroll Tax:A tax whi...

Q. What do you meant by Payroll Tax? Payroll Tax:A tax which is levied on current employment or payrolls (collected either as a fixed amount per employee or as a percentage of

Price elasticity of demand, Explain why each of the following factors may i...

Explain why each of the following factors may influence the own price elasticity of demand for a commodity. The narrowness of the definition of the commodity

International bank for reconstruction and development, INTERNATIONAL BANK F...

INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT: The main function of the IBRD is of long-term capital assistance to its member-countries for their reconstruction and de

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