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The more of the material that is bought to make products, then the cheaper it gets in the long run. The profit that is made when products are then sold increases.
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What are the 4 economic factors of production on Chocolate?
Cost of cocoa beans Scale of production Cost to convert to chocolate Cost of selling and distribution
Why agriculture products prices are high?
for profit maximization,because cost of production of products is costly therefore price is high to cover the cost of production
Idea that as production increases cost per item decreases?
economies of scale :)
How does a company recognize that they've achieved economies of scale or diseconomies of scale?
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.
Reduction in cost of a good brought about by increasing size of a production facility?
economies of scale
What are the 4 economic factors of production on Chocolate?
Cost of cocoa beans Scale of production Cost to convert to chocolate Cost of selling and distribution
Why agriculture products prices are high?
for profit maximization,because cost of production of products is costly therefore price is high to cover the cost of production
Idea that as production increases cost per item decreases?
economies of scale :)
Define economies of scale?
Reduction in cost per unit resulting from increased production, realized through operational efficiencies. Economies of scale can be accomplished because as production increases, the cost of producing each additional unit falls.
What term is used to describe the production of popular good that will over time efficiencies and reduce production cost?
Economies of Scale
How does a company recognize that they've achieved economies of scale or diseconomies of scale?
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.
Reduction in cost of a good brought about by increased size of a production facility?
economies of scale
Reduction in cost of a good brought about by increasing size of a production facility?
economies of scale
How does subsidy affect supply?
It decreases cost of production and increases supply.
Is factory supplies a direct cost?
Factory supplies are those items which used in production but not directly related to production of products that's why not part of direct cost rather indirect cost.
Why do green products cost more than non green products?
Production per hectare is very low.
How did mass production affect the cost of goods?
Mass Production created a lot of goods that were once scarce. now that these factories were pumping out so many products, there became too many on the market. Companies then lowered their prices so that people would by theirs instead of some one else's. so basically mass production lowered the cost of goods
