2.1 Physical and engineering basis: economies of increased dimension
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2.1 Physical and engineering basis: economies of increased dimension
Economies of scope are "efficiencies formed by variety, not volume" (the latter concept is "economies of scale").[1] In the field of economics, "economies" is synonymous with cost savings and "scope" is synonymous with broadening production/services through diversified products. Economies of scope is an economic theory stating that average total cost (ATC) of production decrease as a result of inc
Labour economics, or labor economics, seeks to understand the functioning and dynamics of the markets for wage labour. Labour is a commodity that is supplied by labourers, usually in exchange for a wage paid by demanding firms.[1][2] Because these labourers exist as parts of a social, institutional, or political system, labour economics must also account for social, cultural and political variable
One of the most used definitions of the "capacity utilization rate" is the ratio of actual output to the potential output. But potential output can be defined in at least two different ways. One is the "engineering" or "technical" definition, according to which potential output represents the maximum amount of output that can be produced in the short run with the existing stock of capital. Thus, a
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