It is noted that the law of diminishing marginal returns states that as you increase output, your marginal productivity (the extra output associated with extra inputs) eventually declines. Moreover, if your average costs are constant with respect to output, then you have constant returns of scale. If average costs rise with output, you have decreasing returns to scale or diseconomies of scale. if average cost falls with output, the you have increasing returns of scale. In this case you want to focus your strategy on securing sales that enable you to realize lower costs. Alternatively, if you offer suppliers big orders that allow them to realize economies of scale, try to share in their profit by demanding lower prices. In addition, learning curves mean that current production lowers future costs. It's important to look over the life cycle of a product when working with products characterized by learning curves. In other terms, learning curves is known for "as you produce more, you learn from the experience, and the experience helps you produce future units a lower cost. a. Describe an activity, process, or product of a company(any) that exhibits

(1) economies of scale;

(2) diseconomies of scale;

(3) learning curves.

b. Describe its source, and how the organization/company to exploit the economies, diseconomies and learning curve? You may compute the quanti/quali profit consequences of the company.