Sign Up Now
Get instant access to over 1 million+ study documents
OR
Already registered? click here to login
By creating your account, you agree to our terms of service, privacy policy and student honor code.
Economies of scale comes up when a good or service can be produced on a large scale while at the same time there is no decrease in the input on average. This implies that as a company grows at the same time the production units increase a company has a better chance of decreasing its costs. This theory suggests that there can only be economic growth upon realization of economies of scale. A simpler meaning of economies of scale is doing things in a more efficient manner with increasing the speed or size of an operation. They often come about with fixed capital which is brought down per production unit while the design capacity goes up.
Economies of scale are quite practical concept that can be used to give an explanation to world phenomena. Economies of scale hence exist within transport industry. For instance when transport modes are unbundled legally, bidding is made open for both the multi-mode and single mode operator companies. Whereas in current...
On the other hand one single multi-mode transport company can exploit the potential in the scope as well as the scale economies.it is however important to note that synergies can not totally be used even if this single mode units are under the ownership of one single company. This means that legal unbinding suffices to remove the barriers of entry for single -- mode operations but a=it is not a guarantee to the use of scale and scope economies (Farsi, Fetz, & Filippini, 2012).
The choice between two tendering options is quite an important policy question with important impacts on the organization of…
References
Farsi, M, Fetz, A & Filippini, M., (2012). Economies of Scale and Scope in Local Public Transportation. Retrieved April 23, 2014 from http://www.cepe.ch/download/cepe_wp/CEPE_WP48.pdf
Yevdokimov, Y., (2009). Measuring Economic Benefits of Intermodal Transportation. Retrieved April 23, 2014 from http://ncit.msstate.edu/PDF/7-Measuring-Economic-Benefits-of-IntermodalTransportation.pdf
Economics of International Trade China Exploring the Economics of International Trade: China "Chinese international trade has experienced rapid expansion together with its dramatic economic growth which has made the country to target the world as its market," and its expansion has only continued to show powerful growth within the international economic marketplace (Sun & Heshmati, 2010, p 1). After China was reopened to trading with the West in 1978, the country has
Economics Mexico; How Interest Rates Can Be Used to Manage an Economy The management of the economy, undertaken with strategies from the government and decision fro the central bank, is usually undertaken with the aim of promoting and supporting a stable economy, balancing the desire for sustainable growth with the need to constrain inflation. This is an issue faced by almost all countries; inflation can be harmful to an economy, impacting not
Economics Define economics Economics is defined as the study of how society allocates limited resources and goods (Encyclopedia Britannica, 2009). Resources include inputs such as labor, capital, and land and are used to produce goods. Goods include products such as food and clothing, as well as services such as those of barbers, doctors, and firefighters. Often goods and resources are deemed scarce because of society's demand for them vs. their availability (Stapleford,
Economics The production possibilities curve represents the maximum level at which a country can produce. Freer trade, such as what the EU has promoted since its inception, allows countries to do two things. The first is that it allows them to produce at their production possibilities curve. This occurs because the country under free trade conditions is going to produce those goods in which it has a comparative advantage. This improves
This dependence on the rainfall to multiply makes malaria to have a particular cycle of the infections in these tropic regions. The dry and the wet seasons usually alternate, hence the malaria outbreaks usually follow the rainy seasons. It is also worth noting that the intensity of the malaria transmission is tied on the type of mosquito vector that is in a given region. It is true that the anopheles
Economics The situation in the European air cargo industry bears many hallmarks of a cartel, and this was the finding of the European Commission. The OECD (2002) defines a cartel as "a formal agreement among firms in an oligopolistic industry…on matters such as price, total industry output, market shares, allocation of customers, allocation of territories, bid-rigging, division of profits or the establishment of common sales agencies." The main difference between this