Exactly what decreases in unit cost occur with larger facilities as a result of economies of scale?

Question:

Exactly what decreases in unit cost occur with larger facilities as a result of economies of scale? Might any costs increase with the size of a facility?

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

Step by Step Answer:

Related Book For book-img-for-question

Operations And Supply Chain Management For MBAs

ISBN: 9781119355328

6th Edition

Authors: Jack R. Meredith, Scott M. Shafer

See More Books

Question Posted: Jan 27, 2024 11:01 PM

See More Questions

Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
Planning is one of the most important management functions in any business. A front office managers first step in planning should involve determine the departments goals. Planning also includes...
1. How strong are the competitive forces confronting J. Crew in the market for specialty retail? Do a [Michael Porter] five-forces analysis to support your answer. (see chapter 3 in the textfor...
Why will a reduction in the real interest rate increase investment spending, other things equal?
(a) What is the maximum instantaneous power dissipated by a 3.0-hp pump connected to a 240-V rms ac power source? (b) What is the maximum current passing through the pump?
In Kyoto, Japan in 1995, the United Nations adopted protocols assigning limits to greenhouse gas emissions for developed countries. The Kyoto Protocol was signed by 130 countries, but in 1997, the...
Find the standard error of estimates, and interpret the result.
Prezo Company purchased 80% of Satz Companys common stock for $880,000 on January 2, 2011. Condensed financial information for Prezo Company and Satz Company is given below. On July 1, 2011, Prezo...
A company manufactures kiddie pools. On March 31, the company had 750 pools in inventory. Each pool seels for $25.00. The company's policy is to maintain a pool inventory equal to 15% of next month's...
Why has the concept of economies of scope never arisen before? List where the economies come from.
Identify the similarities in Figures 3.8 (a) and 3.10. Identify the differences. Figure 3.8a Figure 3.10 Output variety High Much Low None Project None One Job Cell Few Flow Many Batch size (a) None...
The air in a room has a dry-bulb temperature of 22C and a wet-bulb temperature of 16C. Assuming a pressure of 100 kPa, determine (a) The specific humidity, (b) The relative humidity, and (c) The...
Factor completely. x10 2x5 +1
Which of the three essential financial statements is most important for your business for the feasibility plan? Explain your answer.
Module 05 Content Background Having a comprehensive understanding of curriculum models and approaches to early childhood education can give you an appreciation of the many options available to...
- 7 ( 3 x - 2 ) 2 find the derivative
The Reciprocal Method Solve the Simultaneous Equations: S1=170,000+(0.2*S2) S2=68,000+(0.2*S1) S1=170,000+[0.2*(68,000+0.2*S1)]
Carbon monoxide at 300 K, 1 atm reacts with theoretical amount of air at 300 K and 1 atm in a chamber. An equilibrium mixture of CO2, CO, O2 and N2 exits the chamber at 1 atm. Determine the...
On average there are four traffic accidents in a city during one hour of rush-hour traffic. Use the Poisson distribution to calculate the probability that in one such hour there arc (a) No accidents...
In the current year, Pelican, Inc., incurs $10,000 of meals and entertainment expenses that it deducts in computing net income per the corporations financial statements. All of the meals and...
In the current year, Juanita and Joseph form a two-member LLC and do not file Form 8832 (Entity Classification Election). As a result, the LLC will be treated as a partnership for Federal tax...
A personal service corporation (PSC) generally is limited to the calendar year for reporting purposes. One exception to this rule is when the PSC can demonstrate a business purpose for a fiscal...
please help Problem 13-7 (Algo) Prepare a Statement of Cash Flows [LO13-1, LO13-2] [The following information applies to the questions displayed below.] Comparative financial statements for Weaver...
A firm has 1000 shareholders, each of whom own $59 in shares. The firm uses $28000 to repurchase shares. What percentage of the firm did each of the remaining shareholders own before the repurchase,...
Vancouver Bank agrees to lend $ 180,000 to Surrey Corp. on November 1, 2020 and the company signs a six-month, 6% note maturing on May 1, 2021. Surrey Corp. follows IFRS and has a December 31 fiscal...

Exactly what decreases in unit cost occur with larger facilities as a result of economies of scale?

Question:

Step by Step Answer:

Economies of scale refer to the cost advantage that a business obtains due to expansion As the production of goods increases the per unit cost of good...View the full answer

Operations And Supply Chain Management For MBAs

Students also viewed these Business questions