Explain the concept of economies of scale. Identify two reasons why economies of scale exist. 1-2 paragraphs

Q: Define economies of scale and explain why they might arise. Define diseconomies of scale and explain…

A: Economies of Scale: Reduction of average and marginal costs in the long run due to an increase of a…

Q: Explain two reasons due to which economies of scale may arise. Write your answer within 40 words.…

A: Economies of scale refer to the cost advantage of the firms when they increase production. Economies…

Q: Explain the difference between increasing returns to scale and economies of scale. In what way are…

A: The aim of any firm to maximize the profits.  To maximize the profits firm has to increase the…

Q: 2. i) With the aid of an appropriate diagram explain what is meant by economies and diseconomies of…

A: i) Economies of scale:Economies of Scale is an economic situation where the long run average total…

Q: explain with graphs the difference between economies of scale, economies of scope and returns to…

A: Economies of Scale  An economy of scale is the expense advantage an organization has with the…

Q: Please choose two topics, one from Technical economies of scale and one from Pecuniary economies of…

A: Economies of scale are cost benefits that organizations gain when production becomes more efficient.…

Q: Explain the Law of Returns to Scale with the help of an example.

A: Long run refers to a period of time in which all the input of the firm are totally variable, that…

Q: d. Briefly explain the meaning of Economies of Scale and explain three reasons why a firm may enjoy…

A: An objective of a firm is to maximize its profit. A firm can increase its profit when its total…

Q: How could you explain the difference between economies of scope and economies of scale?

A: Economies of scope and scale are concepts that relate to the cost of production of firms.  Economies…

Q: Define economics of scale and explain they might arise. Define diseconomies of scale and explain why…

A: Economies of scale apply to the property that as the quantity of product increases, the long-run…

Q: 8. Why is the Minimum Average Total Cost and Efficient Scale important?

A: Average Total Cost : The average cost or average total cost is per unit cost incurred by the firm in…

Q: Economic Mathematics Consider the problem of inventory costs and production to satisfy a demand x…

A: Given information Delivery period T = 8Starting inventory x (0) = 0Ending inventory x (8) =…

Q: Critically demonstrate the key difference between the two economies of scale.

A: Economies of scale are the cost advantages that businesses gain as a result of their size, and are…

Q: Explain two types of economics of scale that a person might gain by moving from a small food stall…

A: Economics of scale is gained when the production scale decreases long term AC. This means it is…

Q: 10. Explain why economies of scale is important

A: Economies of scale: It refers to the reduced cost per unit of output of a commodity because of the…