This BBC article talks about a proposed merger. The result would be a decrease in the average cost of output for the combined group; ie they will experience economies of scale
http://news.bbc.co.uk/1/hi/business/6286830.stm
a) Give examples of the economies of scale that may arise
b) Can you think of any diseconomies that may arise?
c) Draw a diagram to shot the LRATC of production before and after the merger
Subscribe to:
Post Comments (Atom)
Posts
No comments:
Post a Comment