Economic Models Showing How To Scale Back A Developed Nation's Economy To A Point That Is Sustainable?
I'm not completely sure how to phrase my question. Considering the fact that right now developed nations (at least the U.S.) are using resources quicker than they can be replaced, are there any economic theories or ideas on how to scale down an economy into balance with natural resources in order to create a sustainable.... natural... environment? Is there an ideal birth rate?
Please include names, textbooks, or any other source of information so I can read about whatever you say in more depth.
Let me know if my question isn't clearly stated...
Answer:Economists do not build such models. They study how markets work, not technology. Their assumption is that science can solve any technology problems that arise because for the most part they have in the past. With current knowledge there is no way to scale back to a sustainable state without severely impacting the standard of living.
How Do You Achieve An Economy Of Scale?
a) selling fewer units at a higher price.
b) low capital investment.
c)capital investments to increase plant size and reduce costs per unit.
d) All of the above
thanks
Answer:Economy of scale means that per-unit cost is decreasing over a large range of output, so the correct answer is (c).
How Can I Create A Composition Demonstrating Irregularity And Economy Using Changes In Scale?
I can make anything (collage, shapes, etc...anything that can be manipulated on photoshop)
Answer:could you please define "scale"?
like a weight scale or a scale of diffrent shade values?
Which Of The Two Better Explain Leontief Paradox, An Scale Economy Or The Product Cycle Model?
Answer:The product cycle model is based on the Heckscher & Ohlin theory of comparative advantage:
http://www.cabnr.unr.edu/kilkenny/APEC460660/product%20cycle.htm
The Leontief Paradox is the empirical observation that we don't see what the O&H model predicts:
http://en.wikipedia.org/wiki/Leontief_paradox
The New trade Theory, which includes "increasing returns to scale"
http://en.wikipedia.org/wiki/New_Trade_Theory
at least makes an attempt to explain the Leontief Paradox, but it clearly isn't as successful as we'd like.
Examples Of Industry-wide Or Economy-wide Economies Of Scale?
I'm doing an essay about the merits of economic integration and one of the points I have to raise is about economies of scale. I can explain how they come about through integration, as industries can sell to increasingly large markets, but I can't really think of any practical examples of these sort of economies of scale. It's easy on the micro level with regards to individual businesses but I can't really think why the costs of a whole industry would fall when it gets bigger and bigger.
Any ideas to get me going? :)
Answer:I'm not sure why you see a line between the individual companies and the industry as a whole when so many industries are now dominated by a small number of companies.
There have been quite a number of industries where the economies of scale are so great that the small companies just can't compete
The semiconductor fabrication (as opposed to design) industry. Check the bottom line:
http://www.purchasing.com/article/CA6611322.html?industryid=48381
And, more generally, just how many sources of processors for personal PCs are there?
The contraction in the automobile industry as one after another all the small manufacturers have sold themselves to larger companies:
http://www.voxeu.org/index.php?q=node/2463
http://en.wikipedia.org/wiki/Paul_Krugman#International_trade_theory
Join the Discussion
Latest Twitter Links About Economy Of Scale
rotkapchen: @dacort Heck, I made similar observations, economy of scale from ATMs vs branches in early 90's -- but no blogs then to prove it :)
Description: This paper analyzes the timing of mergers motivated by economies of scale. We show that firms have an incentive to merge in periods of economic expansion. Relaxing the assumption that firms are price takers, we find that market power strengthens the firms' incentive to merge and speeds up merger activity. Finally, comparing mergers with hostile takeovers we show that the way merger synergies are divided not only influences the acquirer's and the acquiree's returns from merging, but also the timing of the restructuring.
rotkapchen: @dacort Heck, I made similar observations, economy of scale from ATMs vs branches in early 90's -- but no blogs then to prove it :)
MyndersGlover: @TrafficGen OK, Jim...400 new followers. Is it economy of scale or specific techniques?
pernille: Big is the new small. Welcome to the era of consolidating, streamlining and the economy of scale. Interesting discussion at the agency!5 days ago · Reply · View Tweet
davegraham: @TallMartin not really. economy of scale, sure, but looking at a GPGPU/GPCPU grid model using commodity hardware, I can do more w/less.
rmdstudio: When economy of scale reaches it's limits, it is time to break a business to smaller and more manageable entities and specialize.8 days ago · Reply · View Tweet
Increasing Returns and Path Dependence in the Economy (Economics, Cognition, and Society)
