Production having two outputs - economies of scope, Microeconomics

Assignment Help:

Production having Two Outputs -Economies of Scope

*  Economies of scope exist when joint output of a single firm is greater than the output which could be achieved by two different firms each of them producing a single output.

* Examples:

-The farm of chicken produces poultry and eggs

- Automobile produces cars and trucks

- University Teaching and research

*  What are advantages of joint production?

-An automobile company producing cars and tractors

* Advantages

 1) Both of them use capital and labor.

 2) The firms share resources management.

 3) Both use the same labor skills and type of machinery.   


Related Discussions:- Production having two outputs - economies of scope

Explain about the money metric utility functions, Explain about the money m...

Explain about the money metric utility functions. The Money Metric Utility Functions: It is a nice construction including the expenditure function which comes up into a vari

What are accounting costs and economic costs, It is necessary for the prope...

It is necessary for the proper understanding of the price theory to know the various concepts of cost that are often employed. When an entrepreneur undertakes production of a commo

Economic problems, economic problems are faced by all types of economies bu...

economic problems are faced by all types of economies but they are dealt with differently in different types of economies.discuss

Marginal revenue function, Consider a market that is served by a single-pri...

Consider a market that is served by a single-price monopolist with marginal cost given by MC = $100 + Q. The market demand is given by P = $800 – 3Q. Determine the following: the f

Utility-expenditure duality, Utility-Expenditure Duality: Consider the...

Utility-Expenditure Duality: Consider the minimisation of the  expenditures necessary to achieve a specified utility level. The solution for qi yields the compensated demand f

What is economic efficiency, Q. What is Economic efficiency? Economic ef...

Q. What is Economic efficiency? Economic efficiency Explain a situation where the total value of the end uses, to which the resources are put, is maximised. A consequence is th

What is climate change, Q. What is Climate Change? Climate Change:As a ...

Q. What is Climate Change? Climate Change:As a consequence of cumulative emission of carbon dioxide (a by-product of fossil fuel use) and other chemicals over past two centurie

Production, Suppose that a firm’s production function is given by Q=30L-3L2...

Suppose that a firm’s production function is given by Q=30L-3L2, where L is labor input and Q is the output. a) Derive and draw the firm’s demand for labor while the firm’s produc

Consumer surplus, using necessary and sufficient condition explain consumer...

using necessary and sufficient condition explain consumer surplus diagrammically and mathematically?

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