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To pick an example, let us say that you are interested in publishing a book. The cost of writing the book is the same regardless of how many copies you publish. The cost of designing the cover is the same. The cost of advertising is the same. The cost of editing is the same. The cost of any needed legal consultations or copyrighting is the same. The cost of typesetting (or desk-top publishing) is the same. So if you publish only ten copies, you have to divide all of those fixed costs by ten, and charge accordingly. If you publish a million copies, then the cost per volume of all of those fixed costs is one hundred thousand times less. You see how that works?
Wiki User
∙ 14y ago
Wiki User
∙ 11y agoBy keeping their fixed costs as low as possible.
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Write short notes on economies of scale and diseconomoies of scale?
Economies of scale refers to the increase in the firm's output in relation to a lesser application of factors/inputs which happen in the long run.
What is economic of sales?
Economies of scale are factors which cause the average cost of production to decrease as the volume of its output is increased. It has two types: the internal and external factors.
Factors that cause a producer's average cost per unit to fall as output rises?
economies of scale
What is the economies of scale?
Internal economies of scale arise when the cost per unit
Equilibrium and economies scale in market economy?
Equilibrium and economies scale in market economy
Write short notes on economies of scale and diseconomoies of scale?
Economies of scale refers to the increase in the firm's output in relation to a lesser application of factors/inputs which happen in the long run.
What is economic of sales?
Economies of scale are factors which cause the average cost of production to decrease as the volume of its output is increased. It has two types: the internal and external factors.
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
Factors that cause a producer's average cost per unit to fall as output rises?
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.
Equilibrium and economies scale in market economy?
Equilibrium and economies scale in market economy
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 factors that cause a producers average cost per unit to fall as output rises called?
Economies of scale.
What are factors that cause a producer's average cost per unit to fall as output rises called?
Economies of scale.
What are the factors that cause a producers average cost per unit to fall as output rises called what?
Economies 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.
