Economies and Diseconomies in operations can be ____________.
Economies and Diseconomies in operations can be ____________.
The correct option is C Both (a) and (b)
Economies
of extent refer to these concentrated costs per unit arising due to an increase
in the total output. Diseconomies of scale, on the other hand, take place when
the output increases to such a huge amount that the cost per unit starts growing.
Internal economies of production that the firm accrues when it increases the production
most important to a fall in the cost of production. These take place due to
endogenous factor-like industrial effectiveness, talents of
the management team, type of machinery, etc. These economies take
place within the firm and help the firm only.
External economies are the benefits that each element firm of the
industry accrues due to the expansion of the entire industry.
Thus, the correct option is C.
Economies of extent refer to these concentrated costs per unit arising due to an increase in the total output. Diseconomies of scale, on the other hand, take place when the output increases to such a huge amount that the cost per unit starts growing.
Internal economies of production that the firm accrues when it increases the production most important to a fall in the cost of production. These take place due to endogenous factor-like industrial effectiveness, talents of the management team, type of machinery, etc. These economies take place within the firm and help the firm only.
External economies are the benefits that each element firm of the industry accrues due to the expansion of the entire industry.
Thus, the correct option is C.
