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ryzh [129]
1 year ago
13

In alan blinder's major study of business practices, what proportion of companies reported economies of scale (falling unit cost

s)?
Business
1 answer:
GuDViN [60]1 year ago
4 0

According to Alan Blinder, 11% of companies reported economies of scale. economies of scale mean the cost of production decreases with the increase in the production output. According to Alan Blinder monopoly companies and other big companies with huge production units enjoy economies of scale

Economies of scale refer to the phenomenon in which the average cost per unit of output decreases as the size or scale of the output produced by a firm increases.

This is an example of a natural monopoly. The most efficient number of companies is one. Further economies of scale arise when manufacturing complex products such as automobiles. The manufacturing process involves various complex steps.

There are two types of economies of scale: internal economies of scale and external economies of scale. Internal economies of scale are firm-specific or internally created, while external economies of scale arise from larger changes outside the firm. Both lead to a lower marginal cost of production, but the net effect is the same.

Learn more about economies of scale here: brainly.com/question/780900

#SPJ4

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An industry has 5 firms. Firm A has 30% of the market, Firm B and Firm C each have 25% of the market, Firm D has 15% of the mark
stiks02 [169]

Answer:

2400

Explanation:

The HHI is calculated by squaring the market share of each firm in the industry.

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5 0
3 years ago
________ is the ability of a country to produce a specific good at a lower opportunity cost than its trading partners.
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Comparative advantage
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3 years ago
An economy is operating at an output level below potential real GDP. If the government wishes to use fiscal policy to bring the
Ganezh [65]

Answer:

The answer is B. increase its spending.

Explanation:

Fiscal policy is a tool used by the government of every nation to control its economy. It uses its spending and revenue (tax) to control it.

When the economy is operating at an output level below potential real GDP, it means there are low activities in the economy i.e reduced households' consumption, reduced business investments and reduced government spending.

Government can stimulate the economy (which will increase real GDP) by increasing its spending in all areas.

Increasing taxes will reduce GDP because households' consumption will reduce due to lower disposable income and business investments too will reduce.

Option A and D are wrong because money supply is a monetary policy.

7 0
3 years ago
Explain why most trade occurs because of comparative advantage. Be sure to provide examples from the data tables or from the les
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Most trade is due to the comparative advantage of an organization's ability to produce a good or service with lower marginal cost and opportunity cost.

As an example, we can cite trade between Africa and the United States, where Africa markets agricultural products such as corn and citrus to the US, and the US markets technological products such as computers to Africa.

Therefore, companies will use comparative advantage to acquire goods and services at lower prices than other competitors.

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brainly.com/question/7780461

4 0
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