水平边界确定生产品服务数量品种上一届notes lec 2.pdfVIP

Horizontalboundaries

•Identifiesthequantitiesandvarietiesofproductsandservicesafirmproduces;Theexpansionofa

companybypurchasingoracquisitionofsimilarproductsorservices

oDiffersmarkedlyacrossindustriesandacrossthefirmswithinthem.

oAfewlargefirmsaccountforanextremelylargeshareofindustrysales:IntelandAirbus

oSmallfirmspredominate:appareldesignandmanagementconsulting.

•Advantagesofhorizontalintegration

oEconomiesofscale

Economiesofscaleachievedbysellingmoreofthesameproduct.Thiswillmakethe

averagecostdeclineasoutputincreases,butwilleventuallyriseasproductionreaches

capacityconstraints.

Inreality,costcurvesareclosertoL-shapedcurvesthattoU-shapedcurves.Aminimum

efficientsize(MES)beyondwhichaveragecostsareidenticalacrossfirms

oEconomiesofscope

Economiesofscopeachievedbysharingresourcescommontodifferentproducts.Byusing

commonresourcesafirm’ssavingswillincreaseasthevarietyofgoodsorservices

increase.

oLearningcurve

Expandoutputrapidlytobenefitfromthelearningcurveandachieveacostadvantage



oIncreasedmarketpower

oBranmerecognition

oDiversification

•Sourcesofeconomiesofscaleandscope

oIndivisibilitiesandthespreadingoffixedcost

Themostcommonsourceofeconomiesofscaleisthespreadingoffixedcostsoveran

ever-gratervolumeofoutput.

Fixedcostsarisewhenthereareindivisibilitiesintheproductionprocess.

Indivisibi