Economies of scale
Not what you're looking for?
Which of the following industries do you think are likely to exhibit large economies of scale? Explain why in each case.
a. Home Building
b. Electric power generation
c. Vegetable farming
d. Software development
e. Aircraft manufacturing
Purchase this Solution
Solution Summary
Economies of scale are discussed in this posting. The long-run costs and output decisions are determined.
Solution Preview
Economies of scale occur when long run average costs decrease as output increases.
In industries where this is the case, there tend to be few large firms competing against each other, defined by an oligopoly market structure.
In each of these industries listed, economies of scale could be present. Home building could have economies of scale in that a large ...
Purchase this Solution
Free BrainMass Quizzes
Basics of Economics
Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.
Elementary Microeconomics
This quiz reviews the basic concept of supply and demand analysis.
Economic Issues and Concepts
This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.
Pricing Strategies
Discussion about various pricing techniques of profit-seeking firms.
Economics, Basic Concepts, Demand-Supply-Equilibrium
The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.