Explain the external economies of scale
Explain the external economies of scale.
Expert
External or pecuniary economies to huge size firms occur from the discounts available to this because of:
1. Huge scale purchase of raw materials
2. Huge scale acquisition of external finance at low interest
3. Lower advertising rate at fun advertising media.
4. Concessional transport charge upon bulk transport.
5. Lower wage rates when a large scale firm is monopolistic employer of exact type of specialized labour.
Therefore External economies of scale are strictly based upon experience of large –scale firms or well managed minute scale firms. Economies of scale will not carry on forever. Expansion within the size of the firms beyond a exact limit, so much specialization, inefficient supervision, offensive labour relations etc will go ahead to diseconomies of scale.
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Boris operates a local landscaping company, needs each potential employee to lift a 200 pound tree before being hired whole-time. This obligation is an example of: (1) signaling. (2) discrimination. (3) screening. (4) derived demand. (5) automation. Q : Elasticity of Demand for Labor The The elasticity of demand for labor is directly associated to: (w) labor’s share of total costs. (x) the elasticity of demand for output. (y) the ease of substitution between labor and other resources. (z) All of the above. Discover Q & A Leading Solution Library Avail More Than 1418715 Solved problems, classrooms assignments, textbook's solutions, for quick Downloads No hassle, Instant Access Start Discovering 18,76,764 1926600 Asked 3,689 Active Tutors 1418715 Questions Answered Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!! Submit Assignment
The elasticity of demand for labor is directly associated to: (w) labor’s share of total costs. (x) the elasticity of demand for output. (y) the ease of substitution between labor and other resources. (z) All of the above. Discover Q & A Leading Solution Library Avail More Than 1418715 Solved problems, classrooms assignments, textbook's solutions, for quick Downloads No hassle, Instant Access Start Discovering 18,76,764 1926600 Asked 3,689 Active Tutors 1418715 Questions Answered Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!! Submit Assignment
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