Module 4 And 5 Discussion
csht
EconomicsDiscussions.docxContains unread posts
After viewing the clip “Broke“ from The Office, what was Ryan referring to when he said, “Over time with enough volume, we become profitable.” What short run costs was he focused on, and what was he ignoring? Given what you have learned so far about economies and diseconomies of scale, discuss the ramifications involved as a firm grows bigger. Use examples from beyond your readings to describe firms experiencing either economies or diseconomies of scale and what this implies for competition and for the customers of these firms.
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Search the web and view the video clip 1,000 Flowers Auctioned per Second in Holland. Then, research the Aalsmeer flower auctions in more detail.
What aspects of perfect competition do you see present in the Aalsmeer flower auctions? Since there is no truly perfectly competitive market in the world, but rather markets that approach this extreme, are there any elements of the Aalsmeer flower auction that you find do not fit the model of perfect competition?
Describe another industry that you find fits the model of perfect competition.
