Industry requires economies of scale (Fisheries Industry in Sri Lanka)
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Economies of scale help producers to lower their cost by producing the next unit of output at lower costs. When new competitors enter the market, they will have a higher cost of production, because they have smaller economies of scale. Economies of scale positively affect Fisheries Industry in Sri Lanka. … This qualitative factor will lead to an increase in costs. This statement will lead to a decrease in profits. |
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Threat of New Competitors: Industry requires economies of scale (Fisheries Industry in Sri Lanka)
Economies of scale help producers to lower their cost by producing the next unit of output at lower costs. When new competitors enter the market, they will have a higher cost of production, because they have smaller economies of scale. Economies of scale positively affect Fisheries Industry in Sri Lanka.
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