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No, because the law of diminishing returns. If the demand also increases for the product increases as well then yes.

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Why is the number of firms small in oligopoly market.explain?

By definition, oligopoly means 'a few firms'. The prefix olig- means 'few' in Greek (e.g.) oligarchy - 'rule of the few') and the suffix -poly is the description of a market.Three reasons an oligopoly may persist even without artificial controls include: 1) the market has high entry costs, which serve as a barrier to entry to new firms because high capital costs provide strict economies of scale to larger firms; 2) the oligopolistic firms collude to control the market and prevent competitors entering; 3) leading firms out-compete new firms by artificially lowering prices, initiating a price war which the smaller firms can't afford as larger firms with more financial capital can.


Why do firms use specialisation and how do economies of scale benefit firms?

Specialisation is used by firms because of the extra effectiancy implied by this production process. It provides greater effeciancy as the employee specialises in doing that certain process more effectively than other workers who specialise in other areas, providing a well developed product. Economies of scale, refers to the cost advantages that a business obtains due to expansion. Expantion can be providesd by this extra effeciancy explained earlier, and this economies of graph scale can proves how this can benefit the firms.


How can small firms survive despite competition from large firms?

Small firms can survive against large competitors by focusing on niche markets where they can offer specialized products or personalized services that larger companies may overlook. Building strong customer relationships and community ties can enhance loyalty and repeat business. Additionally, leveraging agility and innovation allows small firms to adapt quickly to market changes and consumer preferences, giving them a competitive edge. Finally, effective use of digital marketing and social media can help them reach broader audiences without the hefty budgets of larger firms.


Are there other public functions that might benefit from more competition including competition from private firms?

Highway departments and public education are two public functions that would benefit from more competition. The incentive to work would be increased in order to keep their jobs.


Do mergers between firms producing similar goods and services always benefit consumers?

No. They CAN, if there is a redudancy in fixed costs which can be pared and spared, but they can also result in a monopoly or, nearly as bad, an oligopoly. These situations tend to raise prices, because the producers are the only (or one of a vew few) game in town, so to speak.

Related Questions

What are the benefits of forward linkages?

Forward Linkages have the benefit of spill overs from upstream firms to downstream firms. Domestic firms benefit from MNEs vertical spillovers and competetion effect.


Who are wealthy individuals who invest in new and growing firms?

Angel Investors


How does specialization by workers benefit firms employing the?

Please rewrite. You need to finish your thoughts.


How do firms benefit from credit purchases?

They can charge extra money for the credit and encourage consumers to spend more.


How does spelization by workers benefit the firms employing them?

Workers who specialize become more efficient and thereby increase productivity.


Why is the number of firms small in oligopoly market.explain?

By definition, oligopoly means 'a few firms'. The prefix olig- means 'few' in Greek (e.g.) oligarchy - 'rule of the few') and the suffix -poly is the description of a market.Three reasons an oligopoly may persist even without artificial controls include: 1) the market has high entry costs, which serve as a barrier to entry to new firms because high capital costs provide strict economies of scale to larger firms; 2) the oligopolistic firms collude to control the market and prevent competitors entering; 3) leading firms out-compete new firms by artificially lowering prices, initiating a price war which the smaller firms can't afford as larger firms with more financial capital can.


Is there a universal optimal capital structure that would benefit all firms?

best universal capital structure for all companies?


What is the best PR firm?

There are many PR Firms which are good, it depends on the kind of business requirement. You can check with Genesis BM India. They are one of the leading and fastest growing PR firms in India and worldwide.


Why do firms use specialisation and how do economies of scale benefit firms?

Specialisation is used by firms because of the extra effectiancy implied by this production process. It provides greater effeciancy as the employee specialises in doing that certain process more effectively than other workers who specialise in other areas, providing a well developed product. Economies of scale, refers to the cost advantages that a business obtains due to expansion. Expantion can be providesd by this extra effeciancy explained earlier, and this economies of graph scale can proves how this can benefit the firms.


Where does one find a sex crimes attorney?

There are law firms that specialize in sex crime defense. One of the larger firms is the Premiere Defense Group, which has offices in many eastern states as well as Texas.


Does financial leverage always increase the earning per share?

no, not for loss making firms


How do investment counseling services operate?

Investment counseling services may also assist institutions and provide services to larger firms. These firms, however, may also offer portfolio management services to individuals