economics

 In this discussion, we will focus on production and cost in both the short run and the long run. We have seen how a firm produces a given level of output with a minimum cost or maximizes output given a certain level of cost. Firms also lower costs by changing their scale or producing different combinations of products. Choose two companies in the same industry, one large and one small. Why might the smaller company charge more for a similar product sold by the larger company? Discuss the sources of economies of scale, expansion opportunities and any boundary’s which might exist in your response.