Saturday, September 8, 2018

Suddenly why did the biriyani shop reduced its price?

Example of economics of scale :

There is a biriyani shop near my locality in kolkata which used to provide biriyani for rs. 80. At first it only produced 100 packets a day. The demand started increasing as more and more number of people were coming. Due to this increased demand there was a increase in production by the shop. Few days later the shop started producing 200 packets a day but the price came down to rs 70.At first i did not understand but now i relate it with economics of scale. Due to increase in production the average cost of producing biriyani decreased. This enabled the shop to decrease the price frm 80 to 70.

By at
Labels:

No comments:

Post a Comment

Subscribe to: Post Comments (Atom)

IMPACT OF SOCIETY /SOCIAL GROUPS ON PURCHASE INTENTIONS OF HOME BUYING- Consumers are the most important factor that will make any bus...

  • Supply in elasticity
    Supply in elastic:if the supply is difficult to replace the product by a substitute goods then that is known as supply-in-elastic. Example...
  • NO PROFIT WITHOUT MARKET STRUCTURE
    MARKET STRUCTURE: there are different market structures that can be characterized to an economy, without market structure any company ca...
  • Supply Elasticity
    If the supply is easy to replace by multiple suppliers then it’s known as supply elasticity. Any unskilled worker is an example of supply e...