Eco 100

PRODUCTION COST AND PERFECT COMPETITIONUNIVERSITYNAME1 . Marginal cost of productionCampbell et al (2005 ) defines the marginal cost of production as a rhythm of the changes in production cost if one extra whole is produced and it helps to determine the optimum level of production . As for our object slighton of Chevrolet caprice by producing their current volume their cost is last at 12500 and if they increase they production volume while retention all the other factors of production constant then the telephoner s cost of production give start increasing and they will no longer enjoy the benefits of large scale leaf production2 . Diseconomies of scale and diminishing returnsCampbell et al (2005 ) describes diseconomies of scale as the disadvantages that a sign of the zodiac incurs as a result of producing in large quantities or grown in size this is a situation that occurs in the long run .

In reference to cost curves it is a point at which the marginal cost of a truehearted s production is increasing as the quantity being produced increases leading(p) to reduced returnsSome of these disadvantages includea ) Poor communication systems- with more employees communication becomes a more complex process causing distortion and less co-ordination of tasks which will lower production returnsb ) Increase in conflicts at bottom the employees which may take more time to resolve conflicts than on organization s activitiesc ) The equipment capacity of production will be labour if they are not changed to accommodate the production of large quantitiesAs...If you fate to get a full essay, order it on our website: Orderessay

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