Discuss and explain what can be learnt by “Industrial Organization”

Expert Solution

First we understand meaning of industrial organization.

In economics industrial organization which deals with the strategic behaviour of firms, market competition, regulatory policy etc. In industrial organization we include lots of things like production, profit, productivity, cost, prices etc.

Now the question arises what we learnt from industrial organization. As we discuss above in industrial organization we include production, profit, productivity, costs, prices, efficiency of labour, output capacity. All things should be known by firm owner, if he does not know about these points then the firm faces difficulty in its early stage or may be shut down the firm. Through industrial organization we know about the prices which prevelant in the market, the quality which provided by the other firms. The cost of producing goods is the most important factor for the firm which decided the future of a firm. The cost of production is directly depended on the productivity of the labour. And the final thing is profit which required by every firm. So all these points which we discuss is understand through industrial organization.

Rahul Sunny answered 7 months ago

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