ECONOMIES OF SCALE

Related BrainMass Solutions

• Description of Economies of Scale

  325117 Description of Economies of Scale Discuss whether economies of scale have any relevance to such companies as Wal-Mart. Economies of scale have great relevance to companies like Wal-Mart. Economies of scale are realized in purchasing.

• Benefits of economies of scale.

  578738 Benefits of Economies of Scale How do economies of scale benefit an organization?

• Sources of Economies of Scale

  354644 Sources of Economies of Scale What are the sources of economies of scale in production? Please provide 2 examples.

• Assumptions Concerning Economics of Scale

  External economies of scale occur outside of a firm, within an industry.

• Effect to a Country of Trade Based on External Scale Economies

  External Scale Economies The external scale of economies can be determined as the occurrence of economies of scale at the industry level instead of firm level.

• Analyzing cost function of a firm

  Are there economies of scale if f = 0. Solution: Average cost AC=C(q)/q=(f/q)+cq For economies of scale to happen, Average cost decreases as output increases i.e.

• Variables affecting economies of scale

  Financial economies of scale.

• Economies of Scope

  488911 Economies of Scope What are economies of scope and how are they different from economies of scale? How are economies of scope related to or affected by learning and experience economies?

• International trade taking place between similar developed economies

  Economies of scale means that production at a larger scale (more output) can be achieved at a lower cost (i.e. with economies or savings).