4.4.2 Economies and Diseconomies of Scale.Economy of scale refers to the reduction in average cost per unit increase in output; diseconomy of scale refers to the. Increase in average cost per unit increase in output. Through operational efficiencies (or inefficiencies) or by virtue. Of inherent features of the facility or its environment the cost, of producing each additional unit may rise or fall as. Production increases. For a given cost function scale economies, or diseconomies with respect to any output variable are. Typically represented by the index of that variable in the cost equation and can be investigated by plotting observed total. Or average unit cost vs. The output variable (Figure 4.6). Depending on facility type and level, of output the average cost. At a certain output level Vc may increase (,, curve A) or decrease (curve C) or may remain the same (curve B).
การแปล กรุณารอสักครู่..