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

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02-08-2022
Business

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

Sagot :

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anshumanaryan799 anshumanaryan799 · Answer 1 · 2022-08-09T11:13:53-04:00

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: https://brainly.com/question/780900

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

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