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

Explain supply of the commodity, The law of supply is that producers will s...

The law of supply is that producers will supply more the higher the price of the commodity.  The supply curve is an upward sloping function showing a direct relationship among pric

Canon, analyze Swot of Canon

analyze Swot of Canon

INTERMEDIATE MICRO ECONOMICS, AS STUDENT OF ECONOMICS ELABORATE ON THE KALD...

AS STUDENT OF ECONOMICS ELABORATE ON THE KALDOR-HISCKS COMPENSATION

What is use of analytical tools in the modern economics, What is use of ana...

What is use of analytical tools in the modern economics? Analytical Tools: Modern economics also gives different powerful analytical tools which are usually specified by geo

Sources of external economies of scale, Sources of external economies of sc...

Sources of external economies of scale: Economies of Skilled Labour: This involves upgrading the skills of labour through the provision of education and training faci

Narrowness definition of commodity, Why narrowness of definition of a commo...

Why narrowness of definition of a commodity may influence price elasticity of demand

When does deadweight loss occur to society, When does deadweight loss occur...

When does deadweight loss occur to society? Applying consumer and producer surplus the efficiency costs of a tax: A tax causes a deadweight loss to society, since less the g

Define direct marketing, Direct Marketing This is a marketing tool des...

Direct Marketing This is a marketing tool designed to elicit instant action from the customer through direct contact.

Allocation function, Allocation Function The shifting or reallocation ...

Allocation Function The shifting or reallocation of production property into or out of markets based on shifts in prices for the products or services produced in that market.

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