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- The Economy of China
- The Economy of India
- The Economy of the USA
- The Economy of South Africa
- Internatioanl Business
- Unit 4 Research
- The Rail Industry Case Study
- Evidence A: UK has the 'most expensive train fares in Europe
- Evidence B: High Speed Rail
- Evidence C: Public subsidy for rail users must end
- Evidence D: EU Directives 91/440- Development of the Community's railways
- Evidence E- Labour calls for review of trains contract awarded to Siemens
- Evidence F- Campaign for better Transport warns Government over high speed rail
- Evidence G- Passenger Kilometers traveled in Great Britain 1987 to 2009
- Evidence H- Passenger journeys in Great Britain in 1985-86 to 2008-09
- Evidence I- Commuters face overcrowding
Monday, 2 January 2012
Expansion of companies
As companies expand they become entitled to economies of scale which is when the purchase of large quantities of a product, the unit cost goes down. This gives a business the choice to either increase profits or reduce prices to gain a competitive advantage. However the expansion of companies can lead them to dis-economies of scale which causes the average unit cost of products increase and inefficiency begins to increase.
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