How does a mutual fund lower transactions costs through economies of scale?

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This question deals with external economies of scale. a) How does external economies of scale potentially...

This question deals with external economies of scale. a) How does external economies of scale potentially justify infant industry protection? Use a diagram to help you answer this. b) Suppose that Germany and India can both produce shirts, but India has a lower average cost curve. Germany has the head start in world production of shirts, beginning as the world's only supplier of shirts. Even though Germany has the head start advantage, India can still enter production of shirts. Draw...

How to determine economies of scale?

QUESTION TWO [20] “When economies of scale are substantial, larger firms can achieve lower average costs...

QUESTION TWO [20] “When economies of scale are substantial, larger firms can achieve lower average costs of production or distribution than their smaller rivals, giving the larger firms a permanent competitive advantage in some industries. By the same token, when diseconomies of scale are operative, larger firms can suffer a greater loss when compared to their smaller rivals. Smaller firms are then able to translate the benefits of small size into a distinct competitive advantage.” In terms of the above...

Trade in the presence of external scale economies leads to prices that are lower than the...

Trade in the presence of external scale economies leads to prices that are lower than the prices in only one of the trading partners before trade. True or False? Justify your answer with an appropriate diagram

1. What are economies of scale? How do economies and diseconomies of scale influence the shape...

1. What are economies of scale? How do economies and diseconomies of scale influence the shape of the long run cost curves? How do economies of scale relate to indivisible setup costs? What are diseconomies of scale and how do they arise?

How do economies of scale impact trade? What are the different types of economies of scale?

1. (5) How does economies of scale lead to more economic growth if there is free...

1. (5) How does economies of scale lead to more economic growth if there is free trade?

Given the following information, does this firm has economies of scale or diseconomies of scale. Explain...

Given the following information, does this firm has economies of scale or diseconomies of scale. Explain why with reference to the values of ATC. Small production unit . Large production uni Q . FC VC Q . FC . VC . 5 50 . 50 50 . 500 . 500 10 . 50 . 70 100 500 . 800 20 . 50 . 200 200 . 500 . 2500

How can economies of scale affect world trade patterns? What affect does it have on a...

How can economies of scale affect world trade patterns? What affect does it have on a firm's decision to "outsource" and/or "Go-off-shore?"

Explain how a variety of forces effects long-run costs: Scale, scope, learning, and Purchasing economies.

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