Diseconomy of scale

others and have cost advantage of producing some goods and they can offer goods at lower price than others. In such as situation countries will provide subsidies to industries whose cost of production is high to enable them to reap the benefit of scale economies. This will pave ways for advanced countries to follow aggressive strategic trade. A vagary of history determines what a country produces and exports rather the resources available. History and accident play a crucial role in determining the

chapter Six businesses and Their Costs ANSWERS TO END-OF-CHAPTER QUESTIONS 6-1 Distinguish clearly between a plant, a firm, and an industry. Contrast a vertically integrated firm, a horizontally integrated firm, and a conglomerate. Cite an example of a horizontally integrated firm from which you have recently made a purchase. A plant is an operating unit where production takes place. This production can be manufacturing, farming, mining, retailing, wholesaling, warehousing—anything

Explain why banks sometimes seek to merge with with Explain why banks sometimes seek to merge with with or acquire other banks or financial institutions. Great changes have been experiences in banking industry for the past decades. The most apparent alter is a mass of bank mergers, which have expanded both the average size of banks and their territories. Other dramatic changes including the development of Internet banking and the combination of banking with other financial services, for

may be asked about the following concepts or issues: Neo-classical assumptions about markets Know the three different kinds of agglomeration economies – what is the difference between them? which one is significant for innovation? Diseconomies of scale – know definition Human capital Comparative advantage Know the three assumptions that inform the ‘monocentric city’ perspective (refer to Kloosterman & Musterd article). As a supply-side strategy for influencing the location choices

Las Vegas is home to some of the most profitable clubs and casinos in the entire world. Many of these firms manage to profit exorbitantly despite residing in markets that have some competitive characteristics (such as fragmented industry and relatively undifferentiated products). Although both types of firms are often very successful, there are stark differences between the two. One significant difference between clubs and casinos is the price of alcohol. At Vegas casinos drinks are typically very

Their set up costs are higher for small batches of production which can drive the product cost higher as well. They are centralized in everything that they do. The centralized logistics model is subject to diseconomies of scale. Opportunities: Zara could take advantage of the fact that China has become "an export powerhouse across the board." The emergence of major suppliers from eastern European countries can be very profitable to Zara. The phasing out of MFA's

was mechanism to increase the productive efficiency at global level. Ricardo’s cost calculation was based on labor hours factor on production. In Ricardo model, there were two commodities and production of that were subjected to constant returns to scale. Comparative advantage was considered to increase and befit from trade. Ricardo’s indicate specialization

Chapter 9 1. All firms, no matter what type of firm structure they are producing in, make their production decisions based on where: marginal revenue equals marginal costs. 2. According to the table below, when profits are maximized, profits are equal to: $2. 3. Many economists believe that the market for wheat in the United States is an almost perfectly competitive market. If one firm discovers a technology that makes their wheat taste better and have fewer calories than all other wheat

Which one of the following is false? d. An accounting firm does not need operations management. Which one of the following policies is stated in the syllabus or the student guideline power point slides for DS 412? D) All students are asked to provide a valid e-mail address on "iLearn".  What are an organization’s goals based on? d. Its mission Operations Management includes all of these activities except: b. Assessing consumer wants and needs Which one of the following is one of the key differences

to a negative return on investment (ROI). As well, firm size, measured by export sales, growth, profitability and internationalization, concluded that large firms are less likely to exit the market. They have the ability to achieve economies of scale (competitive advantage) because they have the ability to absorb fixed costs. Although, there is research to support the fact that