Economies of Scale Discussion, economics homework help

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Economics

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The following quotation appeared in a Wall Street Journal article on the battle for market share in the automobile industry in 2000: "The huge fixed costs involved in developing new vehicles and running big auto factories means auto makers feel compelled to maintain, or expand, market share. Losing share long term could mean shutting down factories, or running factories at unprofitable rates." Do these statements support economic theory and show that economies of scale do not benefit a firm if the output level is small? Remember you have the benefit of seeing actions in this industry in the past 17 years. Be sure to explain your answer.


text book Farnham, P. G. (2010). Economics for managers (2nd ed.). Boston: Prentice Hall.


need atleast 1 paper , very good one

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Running head: ECONOMIES OF SCALE

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Economies of Scale
Name
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ECONOMIES OF SCALE

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Economies of Scale
Economies of scale remain to be the cost advantage that usually arises due to the
increased output of the product. In most of the times, there is the realization of the economies of
scale ...


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