Key Concepts: Firms and Production, From Production to Costs, Cost Schedules and Cost Curves, The Long Run

AirBorn Electronics—Economies of Scale in Production

Read the design steps to review the basic production process of a new electronic circuit board. Click on "see Economies of Scale" under the "Production" section. Study the "Economies of scale in Electronics Production."

• Why is the cost of final production heavily influenced by the number of units manufactured?
• Explain why the PC (personal computer) industry typifies the economies of scale rule.
• Review the production costs and revenue associated with producing Ginseng in Ontario, Canada at the Ontario Ministry of Agriculture, Food, and Rural Affairs. Which cost categories (e.g. preparation, annual cash costs, harvest, etc.) are variable in nature?