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    economies of scale

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    Economy of scale refers to the benefits of producing on a large scale. When firms and industries increase the scale of their operation there can be advantages which reduce the average (unit) cost of their output. Internal economy of scale is the benefit‚ in the form of lower average costs‚ which a firm can gain from increasing its size. Internal economies of scale arise from the growth of the firm itself.  One internal economy of scale can be marketing economies. For food retail industry‚ large firms

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    Setting up and running a small-scale cooking oil business Opportunities in food processing a series Opportunities in Food Processing Setting up and running a small-scale cooking oil business Contributing authors : Barrie Axtell‚ Peter Fellows‚ Linus Gedi‚ Joseph Hounhouigan‚ Franklin Murphy and Peggy Oti-Boateng Edited by : Peter Fellows and Barrie Axtell Midway Associates Published by CTA (2012) The Technical Centre for Agricultural and Rural Cooperation (CTA) is a joint international

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    Executive Summary With Vestas feeling the heat from the recent financial crisis‚ together with the effects from the increasingly competitive industry‚ the company had reached a corporate strategic crossroad‚ whereby in order to anchor Vestas’ global leadership position‚ new expansion opportunities and alternate revenue streams would have to be adopted to mitigate and spread risks brought about from such precarious external crisises. As a result‚ based on an external and internal analysis of the

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    Economies of Scale

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    ECONOMIES OF SCALE Economies of scale are an important aspect of efficiency in production .Economies of can henceforth be define as ‘the reduction in average costs of production‚ that occur as a firm increases in size’. As businesses grow and their outputs increases‚they commonly benefit from a reduction in average costs of production.Total costs will increase with the increase in output‚but the cost of producing each unit falls as output increases .The reduction

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    Economies of Scale

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    ECONOMIES OF SCALE When a firm moves from small scale to large scale production‚ the average cost of production of each unit falls. The reasons for which this happens are known as economies of scale – they are the benefits which result in the cost savings of large scale operations which come about when a firm expands. In other words‚ economies of scale are advantages reaped by firms engaging in large scale production. There are two types of economies of scale. They are: * Internal economies

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    Economies of Scale

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    Economies of scale The long run – increases in scale A firm’s efficiency is affected by its size. Large firms are often more efficient than small ones because they can gain from economies of scale‚ but firms can become too large and suffer from diseconomies of scale. As a firm expands its scale of operations‚ it is said to move into its long run. The benefits arising from expansion depend upon the effect of expansion on productive efficiency‚ which can be assessed by looking at changes in average

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    Scales of Justice

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    Scales of Justice shows a police force where there is a culture of corruption. The parts of the TV program that we saw were made up of two parts‚ The Job‚ and the Game. The Job is about a new probationary officer named Webber‚ and how he is forced to accept the corruption that occurs in the force‚ and ends up getting fired. The Game takes corruption to a new level involving higher powers such as MP’s and non-uniformed officers. They both are good examples of how it is a culture for them. The

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    Economies of Scale

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    Economies of scale    Definition Reduction in long-run average and marginal costs‚ due to increase in size of an operating unit (a factory or plant‚ for example). Economics of scale can be internal to a firm (cost reduction due to technological and management factors) or external (cost reduction due to the effect of technology in an industry). Diseconomies of scale    Definition Increase in long-term average cost of production as the scale of operations increases beyond a certain level

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    “The Computer” It’s History and Spot in American Society “The Computer” It’s History and Spot in American Society It is not very often that a new invention comes about and touches every aspect of our lives. Such a device that changes the way we work‚ live‚ and play is a special one‚ indeed. A machine that has done all this and more now exists in nearly every business in the U.S. and in one out of every two households. This incredible invention is the computer. The electronic

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    Economies of Scale

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    ‘Big Three’ automobile companies are located in this city. The concept of External Scale Economies can help us explain why these three major companies are located in this area. Scales economies are important for a country because they represent a growth in its economy. Companies are able to produce more products or services at a lower cost of input. “External scale economies are based on the size of an entire industry within a specific geographic area.”1 These companies bulk in one specific area in

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