Why do producers use the economy of scale theory when they make business decisions

Social Studies

2 answers:

VladimirAG [237]3 years ago

7 0

Answer:i think the answer was to understand the impact on profits? not sure

Explanation:

Burka [1]3 years ago

6 0

Answer:

The economy of scale theory in microeconomics, refers to the power of an enterprise to achieve an optimal level of production at the lower cost, in other words, when the production of a company grows the costs of each unit produced is reduced, this guarantees higher revenues for the enterprise. It also responds to the laws of offer and demand, and assures that an enterprise do not exceed the production of the item, when it is not demanded by the consumers.

Explanation:

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Brilliant_brown [7]

Answer:

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Explanation:

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3 years ago

Does the war of the ghosts study reinforce the biological approach?

GuDViN [60]

Explanation:

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3 years ago

Place each item below in the appropriate category.

andreev551 [17]

The following indicators placed based the category they belong:

Leading economic indicators:

The unemployment rate
Average duration of unemployment
The trade deficit
Interest rate spread

Not leading economic indicators:

Manufacturer's order for durable goods
Building permit
Housing starts

<h3>What is unemployment?</h3>

Unemployment can be defined as the situation in which a person who is able and willing to work do not find a suitable job at a period of time. Unemployment is one of the most important determinant of the economy because it constitute the factors used to determine production and growth of an economy.

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2 years ago

Limited partners benefit from which of the primary advantages?.

Mrac [35]

Mainly, the Limited partners has a primary advantages in the partnership which is limited business debts up to their personal liability.

<h3>Who is Limited partners?</h3>

A limited partner is an entity that purchased shares in the partnership as an investment but is not actively involved the investment's day-to-day activities.

In conclusion, the Limited partners has a primary advantages in the partnership which is limited business debts up to their personal liability.