Explain what economies of scale are, Microeconomics

Assignment Help:

Explain what economies of scale are and why they have become increasingly common in later years.

Economies of scale - Enhance in fixed factors, but output enhances at a proportionately higher rate than unit costs

  • internal economies of scale

a)  Technical economies of scale - spreading of fixed costs, improved use of capital

b)  Managerial economies of scale - higher efficiency in firms production units by specialisation

c)  Purchasing economies - bulk buying, good customer prices

d)  Marketing economies of scale - advantages of having broad brand-name recognition

e)  Financial economies of scale - larger asset base for security in loans, lower interest

 


Related Discussions:- Explain what economies of scale are

Production posibility curve, what do you understand by production posibilit...

what do you understand by production posibility curve?

Expenditure trends and pattern, Expenditure Trends and Pattern: Total ...

Expenditure Trends and Pattern: Total expenditure of the Centre has risen twice as fast as total revenue, although much of this reflects rising interest payments. Revenue expe

International economics., How has the Haberler''s theory of opportunity cos...

How has the Haberler''s theory of opportunity cost an improvement over the classical theory of trade

Growth, During a given interval a nation''s overall productivity grows at a...

During a given interval a nation''s overall productivity grows at a compounded rate of 2%. Its population growth rate and degree of labor-force participation do not change over thi

Economic instruments, Economic instruments Financial rewards, incentives an...

Economic instruments Financial rewards, incentives and penalties that operate automatically via market forces, to encourage beneficial behavior.

Determine the nash equilibrium, Player 2   C ...

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

Theory of production, THEORY OF PRODUCTION: Production activities rela...

THEORY OF PRODUCTION: Production activities related to goods and services require inputs. Typically, the set of inputs includes labour, capital equipments and raw materials. T

Basics of theory of demand, Basics of Theory of demand: The most famou...

Basics of Theory of demand: The most famous approach in the history of consumer behaviour, after indifference curve approach, is the revealed preference approach. In the revea

Inflation, Inflation is not possible under the gold standard.” Is this stat...

Inflation is not possible under the gold standard.” Is this statement true, false, or uncertain? Explain your answer.

Analyzing market product or services, Rationale of Group Project Group...

Rationale of Group Project Group project allows you to pursue authentic learning with your peers, and to apply theories taught in class and textbooks to real world situations.

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