MICRO-ECONOMICS

Adidas company
PRESENTED TO:
Miss Memoona sadaf
PRESENTED BY:
Abubaker Mir
 CONTENTS:

Economies of scale
Diseconomies of scale
Internal and External economies of scale
Internal and External diseconomies of scale
 ADIDAS

 Overview:
Adidas is a mltinational
corporation, founded and
headquarted in herzogenaurah
footwear,apparel, and
accessories.
Founded.:
18 Auguts 1949;70 years ago
 Revenue:-
Operating income:$2.368billion(2018 )
Net income:$1.702billion(2018)
Total asset:$15.612billion(2018)
Total equity:$6.364billion(2018)
 ECONOMIES OF SCALE

 Economies of scale are the cost advantages that a business can

achieve by expanding the scale of production. That is, when
long-run average costs (LRAC) fall.
 ECONOMIES OF SCALE

Inter nal Exter nal

 Internal economies of scale  External economies of scale
are firm-specific-or caused occur based on larger
internally while. changes outside the firm.
 DISECONOMIES OF
SCALE

 The word diseconomies refers to all those losses which accrue

to the firms in the industry due to the expansion of their
output to a certain limit.
 DISECONOMIES OF SCALE

Inter nal Exter nal

 Marketing diseconomies  Diseconomies of pollution
 Financial diseconomies  Diseconomies of high
factor prices.