Different Economies of Scale

Law of returns to scale examines the input-output relation when all the inputs are changed simultaneously in the same ratio. When a business firm grows in size or increase the scale of operations it can derive production advantages from market and firm size in terms of low average cost of production. Such production advantages due to large scale operations are known as economies of scale. It is present when an increase in output causes long run average cost to fall. The fall in cost of production (average) is because of…

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Importance of Selection of Right Product by a Retailer

When a final consumer reaches a shop to get the desired product, the brands and nature of products may vary according to the availability in the shop. This is an important factor which matter the success of a retail shop. It is a widely accepted fact that none of us can satisfy anybody in all means. Similarly, a shop could also have some limitations in the availability of the product which a customer looks for. But it is to be noted that, though the desired product is not available the…

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