B is correct. As the firm increases output, diseconomies of scale and higher average total costs can result when there is overlap and duplication of business functions and product lines. 【释义】当企业增加产量时,业务功能和产品线的重叠和重复会导致规模不经济和平均总成本的上升。反馈...
Average variable costs:最初随着劳动力和规模经济收益的增加而下降,然后随着产量的增加而上升。 Diseconomies of scale:生产规模的增加导致平均成本(加班工资等)增加。 Economies of scale:生产(产量)的增加导致总平均成本的降低。 Horizontal integration:在同一生产...
Why does the value of money decreases? Why is Ceteris Paribus important in economic analysis? Is it easy to implement? Why? Why is arrangement for depreciation made? Why is profit maximization, by itself, an inappropriate goal? What is the reason behind Rupee value depreciation compar...
Market Economy Defined: A market economy is an economic system where supply and demand play a central role in determining economic decisions and the prices of goods and services. It places individual citizens and businesses at the forefront of economic activity. Role of Supply and Demand: Supply ...
Many hostile takeovers occur because previous friendly takeover attempts have failed for whatever reason. In any case, most hostile takeovers occur because the acquirer wants to: Increase revenue. Remove a competitor from the industry. Gain access to copyrighted, patented, or other proprietary technolo...
The reason for this is as follows. A business’s fixed costs must be paid regardless of the level of output. If we make an assumption that these costs are sunk costs (i.e. they cannot be covered if the firm shuts down) then the loss per unit would be greater if the firm were to...
4.In December 2009 the Royal Mail announced that it had made a 4% increase in profits compared to 2008, despite a fall of 3 million items a day in the amount of post being sent.The most likely reason for the increase in profits was A an increase in contestability in the postal market...
What is the reason to sacrifice the short-run profits for the market position? Should a perfectly competitive firm making a loss in the short-run always leave the market? Why or why not? What about in the long-run? Why do you think the business c...
Furthermore, Williamson argues that diseconomies of scale are counteracted by economies of scale and can be moderated by adoption of the multidivisional organization form and by high internal asset specificity. Combined, these influences tend to cancel out and thus there is not a strong, directly ...
D Its revenue will fall, because demand is price inelastic http://4.InDecember 2009 the Royal Mail announced that it had made a 4% increase in profits compared to 2008, despite a fall of 3 million items a day in the amount of post being sent.The most likely reason for the increase ...