Eco 100

PRODUCTION COST AND PERFECT COMPETITIONUNIVERSITYNAME1 . Marginal equal of productionCampbell et al (2005 ) defines the marginal cost of production as a unit of ammunition of the changes in production cost if one extra upstanding is produced and it helps to determine the optimum level of production . As for our aim slighton of Chevrolet caprice by producing their current volume their cost is sustain at 12500 and if they increase they production volume while retention all the other factors of production constant then the caller-out s cost of production give start increasing and they allow no longer enjoy the benefits of great(p) scale sky production2 . Diseconomies of scale and diminishing returnsCampbell et al (2005 ) describes diseconomies of scale as the disadvantages that a sign of the zodiac incurs as a result o f producing in pear-shaped quantities or grown in size this is a maculation that occurs in the long run .

In reference to cost curves it is a point at which the marginal cost of a truehearted s production is increasing as the quantity organism produced increases leading(p) to reduced returnsSome of these disadvantages includea ) Poor communication systems- with more employees communication becomes a more complex process causing distortion and slight co-ordination of tasks which will lower production returnsb ) Increase in conflicts at bottom the employees which may take more time to separate conflicts than on o rganization s activitiesc ) The equipment ca! pacity of production will be labour if they are not changed to accommodate the production of large quantitiesAs...If you fate to get a full essay, order it on our website: BestEssayCheap.com

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