Search results
Results from the WOW.Com Content Network
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.
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 ...
The following other wikis use this file: Usage on az.wikipedia.org Miqyas iqtisadiyyatları; Usage on bs.wikipedia.org Ekonomija obima; Usage on de.wikipedia.org
Natural monopoly, a monopoly in which economies of scale cause efficiency to increase continuously with the size of the firm. A firm is a natural monopoly if it is able to serve the entire market demand at a lower cost than any combination of two or more smaller, more specialized firms.
The opposite condition may be referred to as negative economies (or diseconomies) of scale. If Y has a single output and prices are positive, then positive economies of scale are equivalent to increasing returns to scale. As with returns to scale, economies of scale may apply over a region.
Different value chains can then be present above or underneath each other in a "map", in order to identify steps that can be "aggregated" across chains to gain economies of scale or "standardised" to gain consistency or "kept separate" to gain local adaptation. These choices then lead directly to organisational implications.
The holiday week opens with another rise in average rates on 30-year and 15-year fixed-term mortgages, trending higher after the Federal Reserve announced a third straight cut to its benchmark ...
Supply-side economies of scale – spreading the fixed costs over a larger volume of units thus reducing the cost per unit. This can discourage new entrant because they either have to start trading at a smaller volume of unit and accept a price disadvantage over larger companies or risk coming into the market on a large scale in an attempt to ...