Identify a product or service produced by the company you selected for your microeconomic/macroeconomic analysis papers. Describe the inputs used to produce this product or service as well as the types of costs involved in its production.
Consider the following questions: What factors may affect the mix of inputs used to produce the product or service? To what extent does your chosen company benefit from economies of scale? What are the sources of economies of scale for your chosen company?
The company I selected was Apple. The Iphone is a big seller for them right now. The inputs used to produce the product would be the chip in the phone, battery needed to power the phone, the glass to protect it, and all the other parts needed to complete the phone. The production costs would include the manufacturing facilities in China, the warehouses where the unsold phones are kept throughout the USA, and the distribution that takes place throughout the USA and the World. Also, the employees required to make the parts as well as run the plants and other parts of the company. Apple benefits greatly from economies of scale. Since it is a large company, it can really benefit from the technology side of economies of scale since it produces so many devices. Being able to buy the parts needed in large quantities allows them to benefit from the marketing side of economies of scale. The marketing side also allows them to benefit from advertising since they can advertise one product and people are still directed to their website and see the many different products they offer. Apple is a worldwide name. It also benefits financially from economics of scale. Some people say that with the loss of Steve Jobs, Apple could see a diseconomies of scale since they may no longer have the managerial expertise they did before or his ideas that caused Apple to get where they are today. Also if they company gets too big it could cause external diseconomies of scale that Apple wouldn’t have control over.
http://www.businessinsider.com/
Miller, R. L., (2014). Economics Today (18th Ed.). N/A. Pearson
Place an Order
Plagiarism Free!
Create an Account
Create an account at Top Tutor Online
- Allows you to track orders.
- Receive personal messages.
- Send messages to a tutor.
Post a Question/ Assignment
Post your specific assignment
- Tutors will be notified of your assignment.
- Review your question and include all the details.
- A payment Link will be sent to you.
Wait for your Answer!
Make payment and wait for your answer
- Make payment in accordance with the number of pages to be written.
- Wait for your Answer as a professional works on your paper.
- You will be notified when your Answer is ready.