Essays Tagged: "Returns to scale"
Distinguish between the law of diminishing returns and returns to scale.
The law of diminishing returns only applies in the Short Run, when only one factor of production is variable and can be inc ... reased the marginal product of that factor will rise at first, but will at some point begin to fall.Returns to scale can only occur when no factors of production are fixed. If the quantities of all of ... production were increased by, proportionately less, or the same. These cases are called increasing returns to scale, decreasing returns to scale, or constant returns to scale.The law of diminishing r ...
Subjects: Businesss Research Papers > Markets & Exchanges
Why is the ability to exploit economies of scale so important in mature industries?
important parts of total cost.Economies of scale are closely linked with the concept of increasing returns to scale and are present when the output of a specific good increases with the cost per unit ... number of reasons why firms are likely to experience economies of scale with some due to increasing returns of scale and some not although most economies of scale can be organised into two types; real ...
Subjects: Businesss Research Papers > Management
Global expansion report
national Business Competing in the Global Marketplace). It is linked with the concept of increasing returns to scale and they are present when the output of goods has increased with the cost per unit. ... ive way. There are many reasons companies experience economies of scale with some due to increasing returns of scale. These can be organized into real and pecuniary economies. It provides companies wi ...
Subjects: Businesss Research Papers > Management