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What is internal economy of scale?
The difference between internal economy of scale and external economy of scale is that internal economies of scale come from within the business ; external economies come from or affect the world outside the business.
What market characteristics suggests that purely competitive firms have only weak incentives to innovate?
Economies of scale
What is the economies of scale?
Internal economies of scale arise when the cost per unit
What does the writer mean by diseconomies of sale?
Not profiting from economies of scale, because there are no economies of scale. That is meant by diseconomies of scale.
What are the sources of economies of scale?
The economies of scale attainable from large scale production fall into two categories. Internal and External.
What is internal economy of scale?
The difference between internal economy of scale and external economy of scale is that internal economies of scale come from within the business ; external economies come from or affect the world outside the business.
Of what significance is economies of scale in planning the establishment of commercial enterprise?
OF WHAT SIGNIFICANCE IS ECONOMIES OF SCALE IN THE ESTABLISHMENT OF COMMERCIAL ENTERPRISE?. economies of scale
What market characteristics suggests that purely competitive firms have only weak incentives to innovate?
Economies of scale
What is the economies of scale?
Internal economies of scale arise when the cost per unit
Define economies of scale How does this relate to returns to scale Cite and briefly discuss the main determinants of economies of scale?
Cite and briefly discuss the main determinants of economies of scale.
What does the writer mean by diseconomies of sale?
Not profiting from economies of scale, because there are no economies of scale. That is meant by diseconomies of scale.
What does a holding company allow?
A holding company allows a corporation to achieve economies of scale as well as geographic or market diversification
What are the sources of economies of scale?
The economies of scale attainable from large scale production fall into two categories. Internal and External.
What are the benefits of economies of scale in business operations?
Economies of scale in business operations refer to cost advantages that come from increased production and efficiency. Benefits include lower production costs, higher profits, competitive pricing, and increased market share.
How does Mexico's economy differ from the US?
Both are capitalist economies. The main difference is the scale and development of both economies. For example, most agricultural production in the US is mechanized and market-driven, while many communities in Mexico still grow crops for subsistence. Also, the US economy is more mature with industries and large businesses first appearing around the second half of the 19th century while Mexico's economy has flourished as late as 1940-1970.
What is the importance of economies of scale?
no
Why don't firm try to maximize their economies of scale and run their operation on the largest possible scale?
It costs money to invest in equipment to increase production up to the frontier where maximum economy of scale exists. But the market demand -- the buyers -- might not be rich and strong enough to take up this extra output, meaning you end up with unsold goods and a market surplus. In turn, a surplus and unsold stock means you must now lower your selling price to get rid of it -- and this changes the "maximum economy of scale" frontier back inward. You're now over-producing, not maximising! As you can see, the "maximum economy of scale" isn't a eternally-fixed, theoretical point -- it's really a flexible and practical point which depends largely on the market conditions at any set moment in time.
