Define Economies of Scale and Give Two Reasons Why Firms

question 93

Essay

Define economies of scale and give two reasons why firms may experience economies of scale. Is economies of scale a long-run concept or a short-run concept?

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Definitions:

Difficult Goals

Targets or objectives that are challenging to achieve due to their demanding nature or high standards.

Specific Goals

Clearly defined, measurable, and time-bound objectives that guide individual or organizational efforts and facilitate performance evaluation.

Goal Acceptance

The process in which individuals agree with and commit to achieving a specified goal, recognizing its value and relevance to their tasks or personal aspirations.

Short-Term Goals

Objectives intended to be achieved in the near future, typically within a timeframe of one year or less.