ECONOMIES OF SCALE IB HL1 ECONOMICS Microeconomics.

Slides:

Advertisements

Similar presentations

© South-Western Educational Publishing Chapter 20 Personal Decision Making  Making Better Decisions  Spending Habits.

Advertisements

Economies of Scale. The advantages of large scale production that result in lower unit (average) costs (cost per unit) AC = TC / Q Economies of scale.

 The study of economics explains how productive resources are used to provide the goods and services that satisfy human wants and needs.  Scarcity is.

A Growing Economy Chapter 10, Lesson 1.

Income and Expenses. Income Income from work A. Wage – money paid by the hour or unit of production. B. Salary – money paid on a weekly, monthly, or yearly.

Topic 1 Business Organisation & Environment

Copyright 2007 – Biz/ed Mergers and Takeovers BTEC Business.

Business cost and revenue

AS Economics and Business Economies and Diseconomies of Scale Unit 2b By Mrs Hilton for revisionstation.

Costs  Costs of Production are the amounts paid by the producer to get the good or service ready for sale. These may include wages, rent, raw materials,

GCSE Business StudiesEconomies of Scale. GCSE Business StudiesEconomies of Scale As businesses grow they have higher costs but these costs can be spread.

The Great Depression Chapter 11, Section 1 Lesson 1: The U.S. economy in the late 1920s. Lesson 1: The U.S. economy in the late 1920s.

1 Homes with Support Ann Fitzpatrick 5 th March 2007.

Examine the role of the government in the US economy. The US is a mixed economy with private and public sector. The government has a crucial role in finding.

KEY WORDS: Economy of Scale ; cost per unit ; internal ; external Economies of Scale  This section is split into 4 sections ;  1. Internal economy of.

Economies of Scale As a firm increases its output, investment is required to support the growth leading to higher costs. Once the investment has been made.

Economic Geography How Economies Change Over Time.

1.6 Growth and Evolution.

IB Business and Management

Economies and diseconomies of scale

Economies and Diseconomies of Scale

Detroit budget crisis: Workers face big blow to benefits BY SUZETTE HACKNEYSUZETTE HACKNEY Detroit Free Press April 10, 2011.

Economic Contributions of LSOs Area of Study 1. Positive Contributions to the Economy.

BUSINESS GROWTH AND OTHER ORGANIZATIONS. GROWTH Businesses can grow through using revenue to reinvest in technology Income statements illustrate this.

Production and Efficiency. Content Specialisation Division of labour Exchange Production and productivity Economies of Scale Economic Efficiency.

The Coca Cola Company. Introduction Coca-Cola is the largest soft drink manufacturing company in the world. The company operates in many countries across.

Media Economics and the Global Marketplace

Economies and Diseconomies of Scale IB Unit GROWTH.

Economies of Scale. Lesson Objectives Understand internal and external economies of scale.

Introduction to Monetary Policy Mr. Way, 2/16/12 CA Standard Understand the aims and tools of monetary policy and their influence on economic activity.

What is Economics?. Economics is…. the study of how people make decisions in a world where resources are limited. it is also the study of how things are.

Business Organisation and Management The Nature of Business Year Eleven – Semester one - Unit one.

4 Sectors of the U.S. Economy

LLLLLLLeeeeeeeeettttteerssssss. Read the definition and then put the letters in the correct order in order to find the word defined.

International Organizations. The United Nations (U.N.) * An organization promoting peace and cooperation on a world wide level -Established after WWII.

Are all the costs of making the good included in the price? Externalities.

1.6 Organizational Planning Tools. Review Business Plan Components:  Executive Summary Overview of new business  Description of Business Opportunity.

Economies of scale Large businesses are able to gain economies of scale. This allows a lower average cost per unit produced.

Understand the issues relating to Globalisation and the environment Able to explain what globalisation is and can give examples of global business activities.

4.2.2 Economies & Diseconomies of Scale

Economies of Scale Questions What does cost per unit mean? Define economies of scale Explain internal economies of scale Explain 2 types of economies of.

ECONOMIES OF SCALE. REVIEW OF ECONOMIES OF SCALE.

The 100 pennies represent $1 dollar in sales Sales

Part 2. Aprende Student Council would like to sell hats as a school fundraiser. There are two companies that they are considering using. Hats R Us charges.

Mergers and Takeovers Extra Notes for Economic Environment of Business.

Productivity and Efficiency

Introduction to Economics Mr. Knight. Definition of Economics The study of choices that people make to satisfy their needs and wants.

Economies of Scale To be able to define economies of scale. (E) To be able to identify relevant economies of scale for a business. (C) To be able to evaluate.

Chapter 2 Managing Resources C H A P T E R 2. Being a Manager Means Managing Resources Money Goods and services People.

Growth through investment. Introduction to Bibby Line Group Started as a family- owned shipping business on 1807 Group now includes logistics, financial.

Level 2 Business Studies AS90843 Demonstrate understanding of the internal operations of a large business.

BUSINESS AND MANAGEMENT MODULE 1 BUSINESS ORGANIZATIONS & ENVIRONMENT.

WHAT IS ECONOMICS? ECONOMICS IS THE STUDY OF HOW WE MAKE DECISIONS IN A WORLD WHERE RESOURCES ARE LIMITED. THERE ARE THREE QUESTIONS THAT WE MUST ASK WHEN.

Economies of Scale. Lesson Objective By the end of this lesson all students should be able to develop their knowledge and understanding of Economies of.

Chapter 1 Introduction To Employee Training & Development.

Purchasing economies The greater the quantities bought of raw materials and other supplies, the lower the average cost Large buyers are able to negotiate.

To what extent has Shropshire Hills Water plc benefited from increasing the scale of its operations? (18 marks)

Economies of scale The advantages of size.

Learn about issues surrounding money

Chapter 2 Product Costing: Manufacturing Processes, Cost Terminology, and Cost Flows.

Theory of the Firm.

Economies of Scale - Benefits of large scale production that result in falling long run average cost.

Unit 5: Production.

American Production UNIT 7.

Introduction to Business

ECONOMIES AND DISECONOMIES OF SCALE

Types of economies of scale

Accounting Presentation

INDIA AND WORLD BANK.

Managerial and professional

Presentation transcript:

ECONOMIES OF SCALE IB HL1 ECONOMICS Microeconomics

Introduction to Economies of Scale Video Takes notes during the video. Devise 3 questions to ask someone else in this class.

Different Types of Economies of Scale Purchasing Economies of Scale (Bulk Buy Discounts) Financial Economies of Scale (cheaper loans) Managerial Economies of Scale Labor Specialization & Economies of Scale Promotional Economies of Scale Transport or Logistical Economies of Scale. Technical economies of Scale

Which companies are big beneficiaries of economies of scale?

A. Explain how the following companies or organization could or do benefit from Economies of Scale. 1 American Airlines mergers with US Airways. 2.Coca Cola gets a very large loan from Bank of America. 3.Amazon buys a fleet of trucks. 4.Three small local municipalities (local governments) merge to form one large super council. 5.Proctor & Gable spent $4.6 billion dollars on advertising in Suggest how AISG may get better deals when providing housing for staff.