Saturday, September 8, 2018

Economies of scale

This week in our college we were said that on Onam Day all the students of our college had to were Dhoti and white shirts(for boys).Unfortunately I never knew how to were a Dhoti nor did i have any Dhoti.When I went to the shop to purchase one, the shopkeeper quoted me ₹300. Which was a bit on the higher side. So the students together decided to order in bulk , around 90 of the together. This brought down the price to ₹200 each. This happened because the shopkeeper was able to produce it are a lower cost, there by taking the Avengers of economies of scale.

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