Description of Economies of Scale

Related BrainMass Solutions

• Benefits of economies of scale.

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

• Vertical differentiation and production decisions

  But one possible answer to this question is that economies of scale outweigh the economies of scope. Another possible solution involves imperfect information.

• 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?

• ECONOMIES OF SCALE

  79779 ECONOMIES OF SCALE What are some facors that give rise to economies of scale? and Diseconomies? Economies of scale can be termed as the increase in efficiency of production as the number of goods being produced increases.