2. ECONOMIES AND DISECONOMIES OF SCALE THE MEMBERS OF OUR GROUP : 组长：刘馨雨 组员：付婕、庞振华、陈若晗、 张璐璐、鲍斯琪

3. Two Types of Economies It means that long-run average costs decline as the level of output for a product,plant or firm is increased Economies of Scale It means long-run average costs rise as the level of output is increased. Diseconomies of Scale

4. Economies of Scale Product-Specific economies 1 Plant-Specific economies 2 Firm-Specific economies 3 The sources can be divided into three categories.,,,,

5. The three kinds of the economies of scale 1.Product-specific economies---economies of scale related to the output of one product;Product-specific 2.Plant-specific economies---economies of scale related to the total output (of multiple products)of one plant; 3.Firm-specific economies---economies of scale related to the total output of the operations of firm.

6. 1. Economies of Scale (1) Product-Specific Economies

7. This is the topic sentence : A number of different sources of scale enconomies are associated with producing large volume of a single product. special-purpose equipment(capital) specialize in performing a given task repetitively(labor)

8. Capital( 资金 ) ——more efficient(specialization)  As the scale of production is increased,special-purpose equipment(capital),which is more efficient in performing a limited set of operations,can be substituted for less efficient general-purpose equipment.  随着生产规模的不断扩大，那些更有效率的只完成一套操 作的专用生产设备可以替代一小部分的通用设备。

9. Labor ——more efficient(specialization)  Workers(labor) can be assigned to the tasks for which they are most qualified.Workers are then able to acquire additional proficiency through repetition of the tasks which they are assigned.  工人们会被分配他们最有资格、做的最合格的工作。之后， 他们就能从被分配的重复的工作中获得更多的经验，提高 熟练程度。

10. So,there is a result...  Generally,the productivity of workers who specialize in performing a given task repetitively is greater than that of more versatile workers who perform a variety of different tasks.  一般地，那些专门从事一项重复任务的工人比那些被分配 各种各样任务的通用性工人的生产效率要高。

11. Learning Curve （学习曲线）  当一个人重复地做某一产品时，由于动作逐渐熟 练，或者逐渐摸索到一些更有效的作业方法后， 作一件产品所需的工作时间（即直接劳动时间） 会随着产品累积数量的增加而减少。

12. Source of scale economies at the plant level include capital investment,overhead,repaired reserves of maintenance parts and personnel

13. The cost of a particular product can be affected by the interactions between product-specific( 产品有关的 ) and plant- specific economies( 与工厂有关的经济性 ) LOREM IPSUM DOLOR

14. As we all know,the price of a commodity can be decided by the cost of production.And the cost includes the direct costs and indirect costs like personnel and overhead costs( 管理成 本 ).Whenever the cost of producing two (or more) products jointly by one plant or firm is less than the cost of producing these products separately by different plants or firms. LOREM IPSUM DOLOR

15. In the airline industry,the cost of transporting both passengers and freight is less than the cost of using two airplanes to transport passengers and freight separately. EXAMPLE

16. 产品的经济性  产品经济性是指产品的设计、制造、使用等各方面所付出 或所消耗成本的程度。同时，亦包含其可获得经济利益的 程度，即投入与产出的效益能力。

17. Reasons: (1).One possible source of scale eocnomies to the firm is in production and distribution.

18. The larger firm will have a lower cost of capital than the small firm. (2).A second possible source of scale economies to the firm is in raising capital funds.

19. (3).Another possible source of scale economies is in technological innovation. （创新）

20. Diseconomies of Scale What is the diseconomies of scale? The effect of the diseconomies of scale. Why the diseconomies of scale happen? Conclusion

21. What is the diseconomies of scale? Diseconomies of scale means long-run average costs rises as the level of output is increased.

22. 21 The effect of the diseconomies of scale? Rising long-run average costs at higher level of output are usually attribute to diseconomies of scale This will lead to a bad effect on the diseconomies of scale.

23. Why the diseconomies of scale happen? Diseconomies of scale at the firm level result from problems of coordination and control encountered by management as the scale of operations is increased. A primary source of diseconomies of scale associated with an individual production plant is transportation costs. Another possible source of plant diseconomies is imperfection in labor market.

24. Conclusion The diseconomies of scale results from the poor management of a company. The development of a company, which has a best equilibrium,in another way, a point, the better the management is, the later the point positioned.

25. LAC : long-run average curve LMC : Long-run management curve

26. 3.Overall Effects of Economies and Diseconomies A means scale economies B means minimum efficient scale C means scale diseconomies

27. Industries  1)Like light industries:textile,furniture manufacturing

28. Industries  2)Like heavy industries:steel ingot production Unproperly managed, labor costs increase, resource wasting,and so on.

29. Minimum Efficient Scale(MES)  Explanation:A scale of production where the internal economies of scale have been fully exploited.It corresponds to the lowest point on the long-run average cost curve and the output achieves productive efficiency.

30. 29 THANK YOU