Question

Write a four (4) to five (5) page double spaced paper in APA format discussing the findings on economics of scale in your own words. Note - paper length does not include cover page, abstract, or references page(s). Structure your paper as follows: Cover page,  Purpose of Research, Review of the Literature , Practical Application of the literature. Describe how your findings from the relevant research literature can shape, inform, and improve current business and professional practice related to your chosen topic. Conclusion in your own words References formatted according to APA style requirements

Answer 1

THE FINDING OF ECONOMICS OF SCALE

ECONOMICS SCALE

Economics scale is which they are seperated into different types :

1. EFFICIENT PRODUCTION

2. REDUCE IN PROMOTION COST

3. CHEAPER CAPATIAL

4, REDUCTION IN LOGESTIC COSTS

5. BUY IN BULK

Where we gonna see each of they separately in a clear definition:

EFFICIENT PRODUCTION :

Where it is an economic term which decebring a level of in which an economy or the

entity can no longer produce an additional amounts of goods without lowing the production level of other products

or goods and this happens when the production possibility frontier . Where the EFFICIENT PRODUCTION may'

also be reffered as production efficiency. where is entity is operating maximum capacity . The concept of economic

production efficiency centers around the charting of a production possibility frontier.

EQUATION :

Output Rate ÷ Standard Output Rate x 100

REDUCE PROMOTION COST

A promotion expense is a cost companies incur to market their products and services

to the consumers. Promotion expenses range from giveaways,promotional gimmicks, or other free samples in order

to help boost sales and revenue. Promotion expenses are deducted from revenue on the income statement .

promotion expense is a cost companies incur to market their products or services to consumers.

Companies can write these costs off to the Internal Revenue Service (IRS) as tax-deductible business expenses.

CHEAPER CAPATIAL

Heap money is a loan or credit with a low interest rate or the setting of low interest rates by

a central bank like the Federal Reserve. Cheap money is money that can be borrowed with a very low-interest rate

or price for borrowing. The use of cheap money successfully mitigated the lows of the Great Recession and

boosted recovery in the U.S. and Japan. However, economies remain sluggish, and the use of cheap money as a

stopgap measure to boost a struggling post-recession economy has become a more permanent arrangement

REDUCTION IN LOGESTIC COSTS

Expect to continually look for ways to reduce logistics costs while still operating your

business efficiently. One of the simplest ways to keep logistics costs under control is to manage orders and

deliveries effectively. It costs a lot more to receive a rush delivery because the materials need to be loaded onto a

plane The purchase price of international products is often lower than local counterparts, but it's far more expensive

and time-consuming to ship international versus domestic products.

BUY IN BULK

Ththe purchase of the whole or greater part of the output of a commodity of a country or state by

a single buyer

usually another country or state;

1. State tradinge purchase at one time, and often at a reduced price, of a large quantity of a particular commodity

2. Supermarkets do not seem to encourage bulk buying: their prices for multiple products are not much

cheaper than buying the products individually