--%>
Assignment Help - homework help

Economies of Scale

Economies of Scale:

‘Economies’ means benefits. The scale refers to the size of unit. ‘Economies of Scale’ refers to the cost benefits due to the bigger size of production. Since the volume of production rises, the overhead cost will come down. The bulk buy of inputs will provide a better bargaining power to the producer that will decrease the average variable cost too. All such benefits are due to the large scale production and such advantages are termed as economies of scale.

There are two kinds of economies of scale:

a) Internal economies of scale;
b) External economies of scale

   Related Questions in Microeconomics

  • Q : Differnt types of demand and supply i

    i want to understand different market competitions using graphs and solving some problems

    		•
  • Q : Labor Market Equilibrium Can someone

    Can someone help me in finding out the right answer from the given options. The wages tend to rise if labor demand: (i) And supply both reduce. (ii) Reduces and supply rises. (iii) And supply both rise. (iv) Rises and supply reduces.

    		•
  • Q : Profit from predatory pricing In order

    In order for a firm to profit from predatory pricing: (w) the incumbent must fulfill the entire industry demand at a price below costs. (x) the cost of predation should be less than the profits incurred through driving out one’s rivals from the

    		•
  • Q : Price discriminate by unregulated

    Unregulated monopolistic firms which do not price discriminate do NOT: (i) have power as price makers. (ii) dominate the supply side of the market. (iii) select profit maximizing price/quantity combinations from the market demand curv

    		•
  • Q : Estimating national income by

    Describe precautions to be taken in estimating national income by expenditure technique? Answer: The following precautions are to be taken while evaluating N.I. by

    		•
  • Q : Changes in price influencing supply

    Describe how changes in the prices of other products influence the supply of a specific product.

    		•
  • Q : CAPM and Portfolio The information is

    The information is illustrated below: (a) Determine the expected return on Stock X?

    		•
  • Q : Discretionary fiscal policy Choose the

    Choose the right answer from following. Discretionary fiscal policy refers to: A) any change in government spending or taxes that destabilizes the economy. B) the authority that the President has to change personal income tax rates. C) changes in taxes and government

    		•
  • Q : Buyers and sellers as in price-takers

    Price-takers comprise buyers or sellers who are not capable to: (w) resist monopolistic exploitation. (x) influence the prevailing market price. (y) adjust the amounts they buy or sell. (z) make short-run economic profits.

    Q : Competition-Welfare Social problem The

    The purely competitive firm in the output market which hires from a purely competitive labor market will employ the labor at the point where VMP = W as the firm: (p) Operates in society's best interest. (q) Wants to be quite fair to workers. (r) Is egalitarian institu

    		•