Are fixed costs relevant in determining whether or not economies of scale are an important determinant...
Are fixed costs relevant in determining whether or not economies of scale are an important determinant of market power? Why?
Homework Answers
Economies of scale are the cost advantages that exist when average total cost declines as the output is increased. Average total cost is total cost divided by output level. In this way because total cost is the sum of both variable cost and fixed cost, total cost as well as average total cost are influenced by fixed cost. If there is an increase in the fixed cost of production there will be an increase in the average cost as well and hence it will influence the economies of scale. Due to this reason fixed costs are considered relevant in determining whether economies of scale exist or not.
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Are fixed costs relevant in determining whether or not economies
of scale are an important determinant...
define economies of scale. Explain why economies of scale are so important.
define economies of scale. Explain why economies of scale are so important.
Economies of scale would be most important for an organization with a/an ____ strategy. A.differentiation B.integration...
Economies of scale would be most important for an organization with a/an ____ strategy. A.differentiation B.integration C.cost leadership D. market segmentation
What are economies of scale and why are such economies available only in the long run?...
What are economies of scale and why are such economies available only in the long run? (in about 600-800 words giving references) Since economies of scale exist, why do long-run marginal costs increase, ultimately, as output increases? (in about 600-800 words giving references)
Increasing returns to scale is characterized by: a. economies of scale; that is, the average cost...
Increasing returns to scale is characterized by: a. economies of scale; that is, the average cost falls as output rises. b. constantly declining fixed costs. c. diseconomies of scale; that is, the average cost is constant as output rises. d. diseconomies of scale; that is, the average cost falls as output rises. e. economies of scale; that is, the average cost rises as output rises.
3 to 5 sentances each 1. Distinguish economies and diseconomies of scale. How can the extent...
3 to 5 sentances each
1. Distinguish economies and diseconomies of scale. How can the extent to which economies and one scale explain the size and number of real world firms in an industry? 2. Distinguish the short run from the long run Generally, what causes costs of production to vary with output in the short ruan? What generally causes costs of production to vary in the long run? 3. What is the difference between economic and accounting profit? Why...
Explain why classifying costs as fixed, variable, sunk or relevant is important for decision making. Highlight...
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Economies of scale are when long-run costs are falling, so do day-to-day costs (like labor) really...
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When a firm operates with economies of scale, average production costs:
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1. How does the economies of scope concept differ from the economies of scale concept? 2....
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3 to 5 sentances each
1. Distinguish economies and diseconomies of scale. How can the extent to which economies and one scale explain the size and number of real world firms in an industry? 2. Distinguish the short run from the long run Generally, what causes costs of production to vary with output in the short ruan? What generally causes costs of production to vary in the long run? 3. What is the difference between economic and accounting profit? Why...
What is the effect of variable and fixed costs in incremental analysis? What information is important in determining whether to accept a special order or not?
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