Search results
Results from the WOW.Com Content Network
In 2019, Germany was the sixth largest consumer of energy in the world. [19] The country also had the largest national market of electricity in Europe. Germany is the fifth-largest consumer of oil in the world, with oil accounting for 34.3% of all energy use in 2018, with another 23.7% coming from natural gas. [20]
Germany is a founding member of the European Union and the eurozone. [26] [27] In 2016, Germany recorded the highest trade surplus in the world, worth $310 billion. [28] This economic result made it the biggest capital exporter globally. [29] Germany is one of the largest exporters globally with $1.81 trillion worth of goods and services ...
Economies of scale is related to and can easily be confused with the theoretical economic notion of returns to scale. Where economies of scale refer to a firm's costs, returns to scale describe the relationship between inputs and outputs in a long-run (all inputs variable) production function.
The total cost curve, if non-linear, can represent increasing and diminishing marginal returns.. The short-run total cost (SRTC) and long-run total cost (LRTC) curves are increasing in the quantity of output produced because producing more output requires more labor usage in both the short and long runs, and because in the long run producing more output involves using more of the physical ...
If only diseconomies of scale existed, then the long-run average cost-minimizing firm size would be one worker, producing the minimal possible level of output. However, economies of scale also apply, which state that large firms can have lower per-unit costs due to buying at bulk discounts (components, insurance, real estate, advertising, etc.) and can also limit competition by buying out ...
In economics, the concept of returns to scale arises in the context of a firm's production function.It explains the long-run linkage of increase in output (production) relative to associated increases in the inputs (factors of production).
Example: Standard Oil (1870–1911)Under monopoly, monopoly firms can obtain excess profits through differential prices. According to the degree of price difference, price discrimination can be divided into three levels. [11] Natural monopoly, a monopoly in which economies of scale cause efficiency to increase continuously with the size of the ...
If Y is a separable production set with a production value function f p, then (positive) economies of scale are present if f p (λx) > λf p (x) for all λ > 1 and f p (λx) < λf p (x) for all λ < 1. The opposite condition may be referred to as negative economies (or diseconomies) of scale.