Explore BrainMass
Share

Explore BrainMass

    Economies of scales, monopoly, specialization and trade

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Please see the attached document for the full questions and graphs/tables that are addressed in the solution.

    © BrainMass Inc. brainmass.com May 20, 2020, 11:41 pm ad1c9bdddf
    https://brainmass.com/economics/cost-benefit-analysis/economies-scales-monopoly-specialization-trade-585335

    Attachments

    Solution Preview

    Please refer to the attachment (extra help6-1.docx) for the full solutions and graphs.

    1. Consider each of the following industries and explain why you would OR would not expect it to exhibit large economies of scale. Answer in 2-4 sentences for each industry.

    A. Aircraft manufacturing
    B. Higher education
    C. Accounting services

    Answer:
    A. Aircraft manufacturing: This industry requires economies of scale due to the nature of the product. It requires a very high start-up cost and expensive technology. Investment in R&D is crucial for technological development and it takes a very long time to get its return.

    B. Higher education: requires large ...

    Solution Summary

    This solution provides explanations on how to solve problems related to economies of scale, which is a long run concept whereby a firm is able to reduce the long-run average cost due to the increase in size, as well as problems looking at monopoly, specialization, and trade.

    $2.19

    ADVERTISEMENT