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 the difference between a stock and a flow, Explain the difference b...

Explain the difference between a stock and a flow.   A stock is something whose quantity is calculated at a point in time, whereas a flow measures the quantity of something ove

Determine the nash equilibrium, Player 2   C ...

Player 2   C B A 1,2 3,2 B 2,3 a, b         Player 1

Energies of the diametric molecules of a gas, Energies of the diametric mol...

Energies of the diametric molecules of a gas, chemistry assignments The analysis basis for treating these different types of motion can be seen by describing the motion of a di

Money creation process, The Money Creation Process is explained below: ...

The Money Creation Process is explained below: We can now study the money supply or the creation process. Suppose the government wishes to buy pencils worth Rs. 10 for the offi

Elasticities of demamnd, The demand for soft drinks has been estimated asQx...

The demand for soft drinks has been estimated asQx 20PX 0.25PY0.45M 2 Determine the own, cross and income price elasticities of demand. Interpret your results.

Conflicting measurements, 1. Using personal (work) experience or examples f...

1. Using personal (work) experience or examples found from companies you research or from text book scenarios: a.  Give an example of at least two "conflicting measurements" bei

Ppc, how to define or interpret ppc curve

how to define or interpret ppc curve

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