Can a firm gain economies of scale indefinitely?
363752
No, eventually they will reach the so called "ideal firm size" and after that point diseconomies of scale set in.
1029181
That thought has crossed my mind before too.\n\nI don't know but I think anything like that is possible when it comes to a company that makes such huge profits based on ppl dieing or being sick.
908509
probably not indefinitely
916110
(a) If marginal revenue is greater then the marginal cost, this signifies that variable costs for production of every subsequent unit are greater then additional revenue associated with it. Therefore, the company is either operating above the equilibrium point or is unable to reach it. As such, company should reduce the level of production to achieve the equilibrium point or stop producing at all. \n\nI would love to help you more on this assignment. If you need professional help - contact us at http://custom-writing.org/\nYour source for professionally written essays and A+ homework.
428478
so they can be more profitable
615414
If you own the company it would be logical that you could make long distance calls.  In this way it would not only be logical but ethical as well.
308495
converting your fixed cost into variable gives u an added advantage of being competitive in a small scale business as due to business of scale (large scale business) your big competitor is always on a gainer side so i think if you can convert it its good and if you are able to get it reduced per unit of operation / u get it in a point of ur maximum scale utilization ur a real gainer
679613
Depends on the size of the factory, and what it's doing.  I'd have to imagine there would be a HUGE variance in cost among different factories.
581075
From the choices, it looks like A.  Decrease.\n\nWith lower margins (see monopoly versus perfect competition), the profits slim down over time and there's less room for individual growth even with the total size of the industry increasing.
334415
I really doubt it.  No company has that much cash on hand to waste.  The 1B is probably referring to the increase in the value of some stock options, which might or might not be a big deal depending on the structure of the company.  If he founded the company and kept a big part of the company's stock over the years, what's the big deal?  No one complains that Warren Buffett's "annual incomes" (really unrealized gains but that's going to be the same as the CEO here) have totaled 40+ billion over the years?
801524
Of course you can, look at all the people who do it. You just have to make it big first.
1048059
Yes!  That way you can learn from the smaller company so you'll have more to offer the bigger company later on down the road!
251664
Yes, even though they are not in business for the purpose of making a profit, they aren't there to lose money either. A break-even analysis will show the business how much it needs to sell without going broke. If the business operates below its break-even point, it will be out of business in no time.
912077
buyin in a large scale n selling in small scale
1159749
No.  It's a solid company and he has laid the groundwork to help it remain successful.  As long as he's still alive it will continue to be a strong company.  Though increased competition could weaken them over time, I would chalk that up to more of a natural progression than anything.
599111
Sure can.  I would recommend working through an international law firm or similar type of service provider to do it, as you must comply with various formalities, there are tax consequences, etc.  The precise costs of setting it up and the requirements (such as minimum capital, etc.) will depend on the country you are considering and the type of entity you set up; for example you could set up a partnership (i.e., pass-through) entity, regular (i.e., US C-Corp-type) company, etc.  The best choice for you will probably depend on what  is you want to do in that country.
18495
Yes you can but usually there are extra costs associated with it.