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How does a company recognize that they've achieved economies of scale or diseconomies of scale?
Wiki User
∙ 13y ago
They can recognise this by seeing that, when quantity is changed, the unit cost of production is falling or increasing at a changing rate. When there is an economy of scale, the unit cost of production is decreasing with units produced; with diseconomies, it is increasing. This can also be represented mathematically by finding the derivatives of cost functions.
Wiki User
∙ 13y ago
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What are the differences between internal and external economies of scale?
AnswerEconomies of scal occurs when there is an increase in output as cost decreases. This means, as a company will have a better chance to decrease its costs. There are two ways of achieving this, internal and external economies of scale. Internal economies of scale occurs due to the change in size of an individual firm and are not dependant on the industry as a whole. This can be achieved in two ways. 1) Firm level 2) Plant level.External economies of scale occurs due to a growth in the industry as a whole. The individual firms need not grow, however the entire industry around them does.
What is a large company's ability to take advantage of economies of scale?
The company can offer goods more cheaply than smaller retailers
Which of the following results from a large company's ability to take advantage of economies of a scale?
The company can offer goods more cheaply than smaller retailers.
What global factors do companies use to move their company to Mexico?
Lower transportation costs, economies of scale and lower wages qualify as such.
What are the benefits of horizontal consolidation?
Horizontal integration/consolidation allows lower costs as it produces a larger company. Larger company produces more services and products. The higher output leads to greater economies of scale and higher efficiency. The integrated company can offer more produce or service as well. These factors lead to an increase in market power, reduced competition and access to new markets.
What is meant by a global company?
a company that operates in almost of the world's economies ie. McDonalds
What can a corporation do to lower its cost of capital?
A finance manage of a company usually will choose methods that will raise capital that will cost the company the least and the methods can vary depending on the company. Selling stocks and more product sales are ways to reduce the cost of capital.
Definition of a global company?
Global companies plan activities on a global basis. By operating in more than one country benefits from savings or economies on activities such as R&D, marketing, operations and finance are achieved which may not be available to domestic companies
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 differences between internal and external economies of scale?
AnswerEconomies of scal occurs when there is an increase in output as cost decreases. This means, as a company will have a better chance to decrease its costs. There are two ways of achieving this, internal and external economies of scale. Internal economies of scale occurs due to the change in size of an individual firm and are not dependant on the industry as a whole. This can be achieved in two ways. 1) Firm level 2) Plant level.External economies of scale occurs due to a growth in the industry as a whole. The individual firms need not grow, however the entire industry around them does.
What is a large company's ability to take advantage of economies of scale?
The company can offer goods more cheaply than smaller retailers
Who achieved by 1860 colonail control of most India?
By 1860 colonial control of most of India had been achieved by the East India Company
What are company goals?
Goals set by a company. Aimed usually to be achieved in a whole sense or by a certain time period.
Which of the following results from a large company's ability to take advantage of economies of a scale?
The company can offer goods more cheaply than smaller retailers.
Difference between centralization and decentralization?
In economics, centralization involves allocating someone (or a company) to be wholly responsible for certain tasks. For example, allocation of bread in centralized economies. Decentralisation is taking power away from the person/company who is supposed to perform these tasks, and allowing free-market economies to form.
Case study?
Case studies are a type of content that showcases a company’s work with a past customer, usually with a focus on statistics that prove the company achieved the desired results.
What US corporation held a large stake in the economies of several Latin American nations during the 1920s and 1930s?
The United Fruit Company held a large stake in the economies of several Latin American nations during the 1920s and 1930s.
