Diseconomy of scale

16. The existence of both economies of scale and diseconomies of scale would have what effect on the LRAC curve?  A. It would make it upward-sloping. B. It would make it downward-sloping. C. It would give it an inverse U shape. D. It would give it a U shape. E. It would make it horizontal.   17. All of the following, except one, are examples of pecuniary economies of scale. Which is the exception?  A. A lower interest rate paid on money borrowed. B

The New York Post’s business article, "Comcast-Time Warner Cable Critics Fired up," written by Claire Atkinson and Josh Kosman, discusses the Comcast and Time Warner Merger. Comcast has a deal with Time Warner that Comcast will pay $48.5 billion for the company. This deal is currently being reviewed by FCC. There is a possible violation of antitrust laws, as this deal may cause Comcast to be a monopoly of the cable industry. Many companies, like Amazon, Netflix, Dish Network, and Discovery Communications

reduce the risk and increase the revenue, he claims that the oil industry in Alberta, especially the sand-oil project, works inefficiently and wastes a lot of resources which is a typical example of diseconomies of scale because of the heavy industry and structure. The definition of diseconomies of scale is a firm which may become less efficient if it becomes too large (“economics online”). In my opinion, these two books all

decreases cost rise. 5. State whether the following firms are experiencing economies of scale or diseconomies of scale. a. West Company can produce 1,500 units at an average total cost of $2.50 or 1,800 units at an average total cost of $2.55. Economies of scale, cost per unit is lower b. North Company can produce 500,000 units at a total cost of $220,000 or 600,000 units at a total cost of $250,000. Economies of scale c. Iams can produce 10,000 bags of dog food at a total cost of $150,000. If they

fast-fashion system. However, Zara’s strategy creates some weaknesses. Their vertical integration has more advantages than drawbacks but it is important to recognize its limitations. Vertical integration often leads to the inability to acquire economies of scale, which means Zara cannot gain the advantages of producing large quantities of goods for a discounted rate. Higher costs are then incurred for the Inditex

CHAPTER The Cost of Production 7.1 Measuring Cost: Which Costs Matter? 7 Economic Cost versus Accounting Cost ● accounting cost equipment. CHAPTER OUTLINE 7.1 Measuring Cost: Which Costs Matter? 7.2 Costs in the Short Run 7.3 Costs in the Long Run 7.4 Long-Run versus Short-Run Cost Curves 7.5 Production with Two Outputs— Economies of Scope 7.6 Dynamic Changes in Costs—The Learning Curve 7.7 Estimating and Predicting Cost ● economic cost

to the concept of economies of scale. For BCF the addition of one unit of capacity i.e. from the extra capacity provided by the conventional technology option, the total fixed costs per unit of potential production output will decrease. For the new technology option, the addition of one unit of capacity will increase unit costs – a diseconomy of scale. Initially, this claim is based on the capital cost of implementing the new technology option, as well as diseconomies of over using capacity having

Capacity and Process Technology Strategy Advice for Bonkers Chocolate Factory: A central aspect of the dynamic problem facing a business in an evolving and competitive industry is the decision about additions to productive capacity. The purpose of this report is to provide strategic advice for the CEO of Bonkers Chocolate Factory (BCF), the U.S division of a multi-national candy company operating in the highly competitive chocolate products market. In late 2001, the main issue facing BCF management

Miranda Hill Professor Allison Post Political Science 139D 17 November 2016 Explanations for Urban Growth in the Developing World Over half of the world population is living in urban environments and projections for the next 30 years predict that the majority of population growth will be taking place in cities in the developing world. While more mega-cities, meaning cities larger than ten million, have been on the rise, still a majority of people who live in urban environments are living in smaller

hired ones. Similarly, a firm can also have its own storage facilities which reduce cost of operations. 7. OVER HEAD ECONOMIES These economies will arise on account of large scale operations. The expenses on establishment, administration, book -keeping are more or less the same whether production is carried on small or large scale. Hence, cost per unit will