One of the primary sources of diseconomies of scale is the inefficiencies associated with managing large scale operations.
76) "Learning by doing" results in decreased average costs of production and is illustrated by a downward shift of the firm's long-run average cost curve.
77) Failure to account for the increased transportation costs that would result from building fewer and more centrally located production facilities could result in firm managers selecting a scale of operation that is larger than the optimum.
78) The "minimum efficient scale" of operation in an industry is defined as the scale of operation in an industry that is least efficient.
79) Consideration of the minimum efficient scale of operation would suggest that, to minimize production costs, the market should be served by a large number of small firms when the LRAC curve slopes downward over the relevant range of output.
80) The text considers three methods that can be used to obtain empirical estimates of long-run costs in different industries. Of those three, surveys of expert opinion are considered to be most reliable because they are less subject to bias than the other two methods.
81) Most of the empirical research on long-run costs suggests that the long-run average cost curve for most firms has a very pronounced U-shape.
82) Over the past several decades, technological change has led to a significant amount of consolidation in the U.S. brewing industry.
83) Empirical evidence suggests that economies of scale, advertising and image differentiation, and risk spreading all help account for the large-scale production that exists in many sectors of the economy.
84) Regarding the production of health care, more recent studies suggest that economies of scale exist up to a hospital size of approximately 200 beds.
Required: • Use the following information to complete Keith and Jennifer Hamilton's 2018 federal income tax return. If any information is missing, use reasonable assumpti...Nov 23 2019
Consider 2 scenarios of an athlete performing push-ups. The first shows the athleteâ€™s body while the arm is straight and the body makes 20Â° angle with the floor line. ...Apr 16 2020
Riverside Inc. makes one model of wooden canoe. Partial information for it follows. Number of Canoes Produced and Sold 600 800 950 To Variable costs $129.000 228 000 172....Apr 04 2020
In December 2016, Shire Computer’s management establishes the 2017 predetermined overhead rate based on direct labor cost. The information used in setting this rate inclu...Sep 07 2020
Discuss the capital asset pricing model including the concepts of unsystematic risk, systematic risk and beta.Dec 09 2019
The Garden.com start-up, the opening case in this chapter, failed because (A) It spent heavily on content and capabilities that customers did not value. (B) Its reput...Mar 23 2018
Sunset tours has $3,500 account receivable from the Del Mar Rotary. On January 20, the Rotary makes a partial payment of $2,100 to Sunset Tours. The journal entry made on...Apr 11 2018
Operations of Borderland Oil Drilling Services are separated into two geographical divisions: United States and Mexico. The operating results of each division for 2010 ar...Apr 19 2020
What is the criterion on which business processes should run?13) How can one develop competitive strategies using products? How can information systems help in the proce...Dec 07 2019
For its “music 360 “survey, nielsen co asked teenagers and adults how each group has listened to music in the past 12 months. Nearly two thirds of U.s teenagers under the...May 15 2020
Welcome to MyCourseHelp Services, World's leading Academic solutions provider with Millions of Happy Students.