Define economies of scale and explain why they might arise. Define diseconomies of scale and explain why

Question:

Define economies of scale and explain why they might arise. Define diseconomies of scale and explain why they might arise.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Principles of economics

ISBN: 978-0538453042

6th Edition

Authors: N. Gregory Mankiw

See More Books

Question Posted: Dec 14, 2012 06:58 AM

See More Questions

Explain briefly how economies of scale and scope can be developed in production, marketing, finance, research and development, transportation, and purchasing.
Explain how the DaimlerChrysler merger enhanced economies of scale and scope in the respective firms. How successful was the venture in attaining such economies?
Define demographics and explain why they are important to advertisers.
What are the pros and cons of Sephora carrying more than 200 brands of personal care products?
(Requires the subsection on Combining Subspaces, which is optional.) Suppose that V = V1 V2 and that V is isomorphic to the space U under the map f. Show that U = f(V1) f(U2).
1. What is an ordinary and necessary business expenditure?
Describe scheduling needs in job shops. LO.1
Three recent college graduates have formed a partnership and have opened an advertising firm. Their first project consists of activities listed in the following table. a. Draw the precedence diagram....
Presented below is selected information related to Swifty Corporation at December 31, 2019. Swifty Corporation reports financial information monthly Accounts Payable $3,120 Salaries and Wages Expense...
Haltoyb Chicken Sdn Bhd was established in year 2015 as a poultry business. The business operation focuses on supplying and producing processed chicken to the northern region market of the Peninsular...
How and why does a firms average-total-cost curve differ in the short run and in the long run?
This chapter discusses many types of costs: opportunity cost, total cost, fixed cost, variable cost, average total cost, and marginal cost. Fill in the type of cost that best completes each sentence:...
In 2005, Roland, who is single, purchased a personal residence for $340,000 and took out a mortgage of $200,000 on the property. In May of the current year, when the residence had a fair market value...
Home Base, Incorporated reports the following production cost information: Units produced 97,000 units Units sold 92,000 units Ending finished goods inventory 5,000 units Direct labor $17 per unit...
About New York City public sector finance. The other way is to delineate the problem. We should use data to show a problem, and then analyze the environment in which budgeting takes place to suggest,...
From a survey a company has determined that 23% of its customers are classified as "advocates" , 68% as "passives" and the remainder as "detractors" . Research suggests that during a year 15% of the...
The following are the transactions of Spotlighter, Incorporated, for the month of January. a. Borrowed $3,940 from a local bank on a note due in six months. b. Received $4,630 cash from investors and...
1. What are the deeper problems that plague in different forms it takes throughout the world according to the authors? Please, briefly explain. 2. Why was Joseph Schumpeter a pessimist about the...
Natsam Corporation has $250 million of excess cash. The firm has no debt and 500 million shares outstanding with a current market price of $15 per share. Natsams board has decided to pay out this...
A test car is driven a fixed distance of n miles along a straight highway. (Here n Z+.) The car travels at one mile per hour for the first mile, two miles per hour for the second mile, four miles...
How many lines of the following class contain compilation errors? A. None. B. One. C. Two. D. Three. E. Four. F. The answer cannot be determined with the information given. 1: class Fly { 2: 3: 4: 5:...
Just to make sure youve gotten enough practice using the different formulas in this chapter, lets try a challenging exercise with them. Very little information is given in the following table, but...
Entrepreneurs shift capital and labor across industries in pursuit of profit. Lets look at this a little more closely. Suppose there are two industries: a high-profit industry, Industry H, and a...
Weve claimed that the efficient way to spread out work across firms in the same industry is to set the marginal cost of production to be the same across firms. Lets see if this works in an example....
A company has net income of $196,000, a profit margin of 9.7 percent, and an accounts receivable balance of $135,370. Assuming 70 percent of sales are on credit, what is the companys days sales in...
Hrubec Products, Incorporated, operates a Pulp Division that manufactures wood pulp for use in the production of various paper goods. Revenue and costs associated with a ton of pulp follow: Selling...
The AICPA guidelines suggest that taxes should be transparent and visible. This means that: a. The taxes affect similarly situated taxpayers in a similar manner. b. Taxes should be due at the same...

Define economies of scale and explain why they might arise. Define diseconomies of scale and explain why

Question:

Step by Step Answer:

Economies of scale exist when longrun average total cost falls as t...View the full answer

Principles of economics

Students also viewed these Economics questions