What is meant by economies of scale and what is the importance of this concept to economic growth?
Please provide the best answer for the statement.
Economies of scale are production advantages which are derived from market and firm size. The importance of this concept is that large manufacturers are able to use assembly-line production techniques, to use large-scale efficient equipment, and to take advantage of specialization that cannot be done in small-scale production. This efficiency in production and distribution contributes to growth.
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Charles Beard (1935) argued that the economic self-interest of businessmen, merchants, manufacturers, bankers and investors led them to convene at the Constitutional Convention in the late 1770s
They believed that creating a new, or at least modified, system of laws would help them advance the projects in which they were interested at minimal cost. Indicate whether the statement is true or false
When costs spill over to third parties, there is a(n)
A) cost overrun. B) excessive competition. C) negative externality. D) government subsidy.