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2006-10-26 00:58:30 · 6 answers · asked by tennisboyusa 3 in Social Science Economics

nah.. its economy of sales

2006-10-26 01:12:41 · update #1

6 answers

Are you perhaps referring to an "Economy of Scale?"

2006-10-26 01:02:08 · answer #1 · answered by Anonymous · 1 0

Woops i just saw that you didnt mean economies to scale but i already wrote the answer so here it is:

If you did mean economies to scales then i will attempt to define it. Economies to scale occurs in a company, when they are at the point in production and fixed capital, that if they produce more of a good each good they produce will become less expensive. This occurs mainly because they have more facilities to produce the goods than they have production occurring.

Imagine the cost curve as a large frown shape as you may have seen in the text. As quantity produced (the x axis) moves to the right (increases) price (the y axis) decreases at first then reaches a point that they become less efficient to produce more of the good. Imagine if their is not enough room for the workers to work or not enough machines or tools. You can add more workers to try and make more goods but at some point your factory will be just too full. At that point when it starts to become more expensive you now have Dis-economies to scale. at the lowest point you have what is called constant returns to scale.

2006-10-28 15:54:54 · answer #2 · answered by Tacereus 4 · 0 0

Nothing happens until somebody sells something!! No business can operate without sales. No business can grow without sales.

2006-10-26 01:08:07 · answer #3 · answered by barrettins 3 · 0 0

Do you mean economy of scale???
That is, for example, if you produce the same product more, your additional cost to produce one more product will be lower.

2006-10-26 01:02:16 · answer #4 · answered by linerak 3 · 1 0

I suggest that your reference is to an economy with an extremely large wholesale sector and very many middlemen.

2006-10-26 01:45:25 · answer #5 · answered by Einmann 4 · 0 0

it is a very ancient discipline that studies how much it cost to sell something

2006-10-26 02:29:09 · answer #6 · answered by Borat2® 4 · 0 0

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