经济代写|微观经济学代写Microeconomics代考|ECON106

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经济代写|微观经济学代写Microeconomics代考|Economies and Diseconomies of Scale

When a firm increases the scale of production there are three outcomes that can occur, as highlighted in Figure 5.5. Assume our pizza factory owner currently employs 50 workers and 10 machines in a factory with a floor space of $1,000 \mathrm{~m}^2$ and currently produces 2,000 pizzas per day. The total cost of producing these 2,000 pizzas per day is $€ 4,000$. The average cost of each pizza is, therefore, $€ 4,000 / 2,000=€ 2$ each.
Paolo doubles the input of all the factors of production and as a result now employs 100 workers, 20 machines and has $2,000 \mathrm{~m}^2$ of capacity. The cost of expanding the scale of production is clearly going to be higher, but what happens to the average cost depends on how far total cost increases in relation to the increase in output. If the total cost of production doubled to $€ 8,000$ and output also doubled to 4,000 , the average cost of each pizza would still be $€ 2$. The firm is said to be experiencing constant returns to scale. This occurs when long-run average total cost does not vary with the level of output.

If, however, the total cost of production at the new scale of production increased to $€ 6,000$ and output doubled to 4,000 , the average cost of each pizza would now fall to $€ 1.50$ each. The firm will experience increasing returns to scale, because the proportionate increase in output is greater than the proportionate increase in total cost. This is also referred to as economies of scale, which occur when long-run average total cost declines as output increases.
constant returns to scale the property whereby long-run average total cost stays the same as the quantity of output changes
economies of scale the property whereby long-run average total cost falls as the quantity of output increases
If the doubling of factor inputs (to 100 workers and 20 machines) leads to an increase in total costs (to $€ 10,000$, for example) that is greater than the increase in output (assume this is 4,000 ), the firm is said to experience decreasing returns to scale and the average cost per pizza would now be $€ 2.50$ each. When the long-run average total cost rises as output increases, there are said to be diseconomies of scale.
diseconomies of scale the property whereby long-run average total cost rises as the quantity of output increases
Note that when we talk about economies of scale we are referring to unit costs (or average costs). Clearly if a firm increases its capacity by building a new factory and then hiring more capital and labour to work in the factory, total costs are going to rise, but if the relative increase in output is greater than the relative increase in total costs as a result, then the unit or average cost will fall. We are referring to the concept of scale as the proportionate increase of all factor inputs and the resultant relative increase in output. Consideration must be given to the price of factor inputs. In our example, the price of labour is $€ 60$ per unit and the price of capital $€ 100$ per unit. If these prices remain constant, then a 50 per cent increase in all factor inputs would increase total cost by 50 per cent. If this 50 per cent increase in inputs leads to a 75 per cent increase in output then average costs will fall.

经济代写|微观经济学代写Microeconomics代考|External Economies of Scale

External economies of scale are the advantages of large-scale production that arise because of the growth of the industry as a whole. External economies of scale might be accessible to firms because of the concentration of firms in an industry in a particular area or region. For example, the City of London has a concentration of financial firms in banking, accounting, insurance and finance. This concentration of firms provides benefits through the supply of skilled labour, the access to expertise, the benefits which derive from reputation, training facilities, infrastructure, and local knowledge and skills. The growth of certain ports has brought with it considerable investment in infrastructure in roads and rail which help improve the efficiency with which goods can be transported across countries. Information exchange across some industries can be highly developed with trade journals, R\&D, market information and forecasting being shared across different firms. In agriculture, for example, farmers can access high quality information about prices, market supply forecasts and scientific developments which can help them to plan more efficiently and to maximize output and minimize inputs. In the north of England, there is a concentration of chemical plants around the River Tees. Chemical firms on Teesside can benefit from expertise in the emergency services who have been specifically trained to deal with fires or safety incidents involving chemicals. Firms may also be able to take advantage of local infrastructure or expertise in waste disposal which makes it cheaper per unit compared to having to pay for these costs individually.

The Causes of Diseconomies of Scale Diseconomies of scale can arise because of coordination problems that are inherent in any large organization. As the scale of operations increases, the management within the organization becomes more challenging and management teams can becomes less effective at keeping costs down. Communication between workers and management and between different functional areas become more difficult. This can result in decisions taking longer to implement, reduced flexibility in responding to customer and market changes, and rising unit costs.

In larger firms, worker motivation may be affected as they are more removed from the ‘big picture’ than may be the case in smaller firms. Some workers only ever see a small part of the whole production process, and it becomes more difficult for them to feel part of the business and have any influence in the way the business develops and operates. This can result in lower productivity and alienation and again, in rising unit costs.

Larger firms may also suffer from the problems of asymmetric information. When operations are on a large scale and scattered across many different countries, the actions of individuals employed by the firm become more difficult to control and monitor. Firms may have to put in place systems to monitor activity to try to encourage efficiency and effective decision-making, but this can be expensive. Even with such monitoring systems, firms may still not be sure that individuals in key positions in the business will make decisions based on what is best for the business. Some individuals may make decisions based on their own self-interest or make decisions which are misguided and not beneficial to the business. For example, how do firms know that the recruitment processes across all a business’s global operations are carried out fairly and with improving productivity in mind rather than the personal reasons of individuals involved? Is it necessary, for example, to increase the number of workers employed to improve productivity and efficiency, or is it more a case of some individuals seeking to boost their own status and power base?

经济代写|微观经济学代写Microeconomics代考|ECON106

微观经济学代考

经济代写|微观经济学代写Microeconomics代考|Economies and Diseconomies of Scale

当一家公司扩大生产规模时,可能会出现三种结果,如图 5.5 中突出显示的那样。假设我们的比萨厂老板目前在占地面积为1,000 米2目前每天生产 2,000 个比萨饼。每天生产这 2,000 个比萨饼的总成本是€€4,000. 因此,每个披萨的平均成本是€€€4,000/2,000=€2每个。
保罗将所有生产要素的投入翻了一番,结果现在雇用了 100 名工人,20 台机器,并拥有2,000 米2容量。扩大生产规模的成本显然会更高,但平均成本的变化取决于总成本相对于产量增长的增长幅度。如果总生产成本增加一倍€€8,000并且产量也翻了一番,达到 4,000 个,每个披萨的平均成本仍然是€€2. 据说该公司正在经历持续的规模回报。当长期平均总成本不随产出水平变化时,就会出现这种情况。

然而,如果新生产规模下的总生产成本增加到€€6,000产量增加一倍,达到 4,000 个,每个比萨饼的平均成本现在将降至€€1.50每个。企业将经历规模报酬递增,因为产出的比例增加大于总成本的比例增加。这也称为规模经济,当长期平均总成本随着产量增加而下降时就会发生。
规模收益不变 长期平均总成本与产出量保持不变
的性质 规模经济变化 长期平均总成本随着产出量增加而下降的性质
如果要素投入增加一倍(达到 100工人和 20 台机器)导致总成本增加(至€€10,000,例如)大于产量的增加(假设这是 4,000 ),据说该公司经历了规模收益递减,现在每个比萨饼的平均成本为€€2.50每个。当长期平均总成本随着产量的增加而增加时,就被称为规模不经济。
规模不经济 长期平均总成本随着产量增加而增加的性质
请注意,当我们谈论规模经济时,我们指的是单位成本(或平均成本)。很明显,如果一家公司通过建造新工厂来增加产能,然后雇佣更多的资本和劳动力在工厂工作,总成本将会上升,但如果产出的相对增长大于总成本的相对增长结果,那么单位成本或平均成本就会下降。我们将规模的概念称为所有要素投入的按比例增加以及由此产生的产出相对增加。必须考虑要素投入的价格。在我们的例子中,劳动力的价格是€€60每单位和资本价格€€100每单位。如果这些价格保持不变,那么所有要素投入增加 50% 将使总成本增加 50%。如果这 50% 的投入增加导致产出增加 75%,那么平均成本将会下降。

经济代写|微观经济学代写Microeconomics代考|External Economies of Scale

外部规模经济是由于整个行业的增长而产生的大规模生产的优势。由于公司集中在特定地区或地区的行业中,公司可能可以获得外部规模经济。例如,伦敦金融城集中了银行、会计、保险和金融领域的金融公司。公司的这种集中通过提供熟练劳动力、获得专业知识、从声誉、培训设施、基础设施以及当地知识和技能中获得的好处来提供好处。某些港口的发展带来了对公路和铁路基础设施的大量投资,这有助于提高货物跨国运输的效率。通过在不同公司之间共享贸易期刊、研发、市场信息和预测,一些行业之间的信息交换可以得到高度发展。例如,在农业领域,农民可以获得有关价格、市场供应预测和科学发展的高质量信息,这可以帮助他们更有效地进行计划,并最大限度地提高产出和减少投入。在英格兰北部,蒂斯河周围集中了化工厂。提赛德的化学公司可以受益于紧急服务方面的专业知识,这些专业知识经过专门培训可以处理涉及化学品的火灾或安全事故。公司还可以利用当地的基础设施或废物处理专业知识,与单独支付这些成本相比,单位成本更低。

规模不经济的原因 规模不经济的产生是由于任何大型组织中固有的协调问题。随着运营规模的增加,组织内部的管理变得更具挑战性,管理团队在降低成本方面的效率也会降低。工人与管理层之间以及不同职能部门之间的沟通变得更加困难。这可能会导致执行决策的时间更长、响应客户和市场变化的灵活性降低以及单位成本上升。

在大公司中,员工的积极性可能会受到影响,因为他们比小公司更远离“大局”。有些工人只看到整个生产过程的一小部分,他们越来越难以感受到企业的一部分,也越来越难以对企业的发展和运营方式产生任何影响。这可能会导致生产力下降和疏远,并再次导致单位成本上升。

较大的公司也可能遭受信息不对称的问题。当业务规模很大并分散在许多不同的国家时,公司雇用的个人的行为变得更难以控制和监控。公司可能必须建立系统来监控活动,以试图鼓励效率和有效的决策,但这可能是昂贵的。即使有这样的监控系统,公司可能仍然不确定业务中关键职位的个人是否会根据对业务最有利的方式做出决策。有些人可能会根据自己的自身利益做出决定,或者做出被误导且对企业无益的决定。例如,公司如何知道企业全球所有业务的招聘过程都是公平进行的,并考虑到提高生产力而不是相关个人的个人原因?例如,是否有必要增加雇用的工人数量以提高生产力和效率,或者更多的是某些个人寻求提高自己的地位和权力基础的情况?

经济代写|微观经济学代写Microeconomics代考

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