Here is the synopsis of our sample research paper on Competitive Advantages of Learning Curve and Economies of Scale and Scope
. Have the paper e-mailed to you 24/7/365.
Essay / Research Paper Abstract
Companies wishing to establish a position in the global economy would do well to look at the economic practices of economies of scale, economies of scope, and learning curve. These economic concepts put into practice have saved many companies billions, while opening them up to competition on a grand scale, as exemplified below. Cases include Ford, Boeing and T1 networks. Bibliography lists 4 sources. jvLrnC06.rtf
Page Count:
6 pages (~225 words per page)
File: D0_jvLrnC06.rtf
Buy This Term Paper »
Unformatted sample text from the term paper:
of economies of scale, economies of scope, and learning curve. These economic concepts put into practice have saved many companies billions, while opening them up to competition on a grand
scale, as exemplified below. Definitions Economy of scale is the reduction of average cost of
a product in the long run, which may be related to reduced costs somewhere within a company, such as ending the R&D costs on a single produce once it is
turned over to manufacturing. Economy of scope refers to changes in average costs because of a change in the mix of output between two or more related or unrelated products
or services. Both reflect costs savings, the first from a reduction in cost of making a product as time goes on, the second from sharing administrative, production or marketing components
to reduce costs for two or more products in production at the same time. One component of cost reduction in either case
can be related to the learning curve, which is the cumulative average output per person and/or the cumulative number of units produced in a manufacturing environment. The output on the
learning curve will increase on a product, for example, over time. While each can stand on its own, when any of the three concepts are combined, the cost savings can
be even more substantial. Economies of Scale in Practice For example, Nolle (1994) writes
about shared internal-external network sharing before it became the norm. The problem as Nolle saw it was the expense of monthly recurring costs. These carrier service charges were "nearly 90
...