Think about returns to a factor, economies of scope and scale.
Find a recent article that discusses one or more of these topics
and how it relates to a real life situation (the article should be
no older than 5 years) and prepare a 1-2 page summary of the
article (include in text citations and References).
Along with this summary, prepare 2-3 discussion questions for
peers to answer. The summaries should also reflect key points from
the assigned reading including...
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?
(4 pts) Define ‘economies of scope’ and ‘economies of scale’.
Discuss how they are similar. Discuss how they differ. Explain how
either could be used to sustain positive economic profits (up to
and including a monopolistic position).
1. Define economies of scale.
2. Define economies of scope.
3. Define economies of sequence.
4. What would you want to know before you commit to a make or
buy decision?
1.Explain what is meant by economies of scale and economies of
scope.
2. Give two examples of what would cause the short-run average
total cost to shift up. Give two examples of what would cause the
short-run average total cost to shift down. Draw both
scenarios.
Do you think that Disney has grown from internal or external
economies of scale?
Assuming that Disney is similar to other multinationals what do
you conclude when you read about the slow economic growth rate in
the U.S. compared with the growth rate of the multinationals of the
past few decades? What about wage growth rate?