"If an Industry's Minimum Efficient Scale Is Between 2,000 and 4,000

question 102

Essay

"If an industry's minimum efficient scale is between 2,000 and 4,000 units of output, then a firm producing 2,000 units of output in that industry has a cost-saving advantage over another firm producing 4,000 units of output in the same industry." Do you agree or disagree? Explain.

Explain the concept of vertical integration within the early film industry.

Understand the concept of break-even analysis and how to compute break-even points in units and dollars.

Calculate the number of units needed to be sold to achieve a target profit.

Understand the relationship between selling price, variable costs, fixed costs, and their impact on profit.