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Economies of Scale in Mixed Economy

Economies of Scale in Mixed Economy

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Published by ychaudhry2006
Economies of Scale in Mixed Economy report
Economies of Scale in Mixed Economy report

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Published by: ychaudhry2006 on Nov 23, 2009
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Economics of Scale exist when the production cost of a single product decreaseswith the number of unit produced. Refer to the situation in which the cost of producingan additional unit of output (i.e., the
marginal cost 
) of a product decreases as the volumeof output (i.e., the
of production) increases. It could also be defined as the situationin which an equal percentage increase in all inputs results in a greater percentageincrease in output. Generally speaking, economies of scale is about the benefits gained by the production of large volume of a product.In business, economies of scale are usually considered in relation to specific areasof the production process, which may be technical, managerial, marketing, finance, andrisk.In achieving economies of scale, many factors must be considered. Economies of Scale bring cost benefit to the producers and gives the following benefits:-
Because a large business can pass on lower costs to customers through lower  prices.
Increase its share of a market.
This poses a threat to smaller businesses that can be “undercut” by thecompetition.Mitchell’s is one of the largest producers in Pakistan. It is ISO-9001 certifiedcompany. It has a number of products available in the market. It is deeply concentratingon various areas where it can maintain its production cost to the lower level with themore production, thus striving for obtaining the economies of scale. It is using some of its major areas like technical farms productions, human resource training, R&D andQuality Control, where with little effort it can bring phenomenal results.1
Title 01Acknowledgement02An Abstract 03
Introduction to the Issue
Perfect Market05
Mixed Economy05
Factors of Production05
Returns to Scale06
Internal Economies of Scale07
External Economies of Scale08
Introduction to the Organization:
Mitchell’s Fruit Farms Ltd.
Introduction & History09
Vision & Mission10
Mitchell’s Products11
Raw Material12
Export & Import13
Present Performance13
Topic Implementation
Mitchell’s Economies of Scale14
Data Collection Methods
SWOT Analysis
References / Bibliography
Perfect Market:
The following assumptions hold:a)There is a large number of buyers and sellers or small firms in the market; b)
All firms know the exact pricing of the other firms.
All firms have the same access to technology and resources
d)The units of goods sold by different sellers are the same - the product ishomogeneous;e)There is perfect information = all buyers and sellers have completeinformation on the prices being asked and offered in other parts of themarket; andf)There is perfect freedom of entry to and exit from the market.
g)seller is not able to set a price and it has no control of price
Mixed Economy:
Economic systemin which both the private enterpriseand adegreeof state monopoly  coexist. All moderneconomiesare mixed wheremeansof  productionare shared between the privateand public sectors. 
Ineconomics, economic equilibrium is simply a state of the world where economicforces are balanced and in the absence of external influences the (equilibrium) values of economic variables will not change. It is the point at which quantity demanded andquantity supplied are equal. Market equilibrium, for example, refers to a condition wherea market price is established through competition such that the amount of goods or services sought by buyersis equal to the amount of goods or services produced bysellers.This price is often called the equilibrium price or market clearingprice and will tend not to change unless demand or supply change.
Inputs are commodities or services that are used to produce goods and services. Aneconomy uses its existing technology to combine inputs to produce outputs.
Outputs are the various useful goods or services that result from the production processand are either consumed or employed in further production.
Factors of Production
factors of production
(or productive
) are the resources employedto producegoodsand services. They facilitate production but do not become part of the3

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