Economies Of Scale In Different Market Structures: Lessons From The Australian Airline Industry And The French Economy Essay.

Economies of scale and market structuresThe efficiency of a firm is determined from its size. The large firms expand from gain in economies of scale. The benefits of scale is defined in terms of its relative cost advantage. A firm is said to experience economies of scale when expanding production operation leads to a continuous reduction in average production cost. This means a larger firm will attain a range of lower production cost as co…