Mar 11, 2016


Assalamualaikum semuaa 
Cuti ni balik yeay yeay
In week 9, kita habiskan chapter 3 yeay !

1. Types of cost production 

2. Economies of scale 
Internal of economies of scale
Labour economy  specializing of labour can help increasing the efficiency of labour and cut the cost of production
Managerial economies every department is under the employment of professionals. It will increase the efficiency and cut cost
Marketing economy  large firm can buy product in bulk at a cheap price, This cuts cost of production. Small firm cannot obtain this benefit.
Technical economies technology can improve production process. This is where the firm uses the capital (machines) in maximum usage.
Financial economy  the ability for firm to obtain funds or loan from others
Risk bearing economy the willingness for the firm to bear the risks in the business

External of economies of scale 

Economies of government action  firm grab the opportunity from governments actions. Example: subsidies
Economies of concentration  based on the location. Firm look for high concentration of customers in the area. This includes transportation and communication from the shop to customers
Transportation  transportation can cut cost because it can help develop more in distant places. 

3. Diseconomies of scale
Management problem  lack of coordination can increase the cost which cause firm to get more complex 
Worker problem  poor motivational from worker leads to shoddy work. 

Thanks for reading !

 P/S : Extra video on cost of production


Post a Comment

wanna leave a comment ? yeay ! i love you

Up and Away