Question

describe the likely economies and diseconomies of scale for an automobile industry.​

Answer 1

Economies of scale refer to these reduced costs per unit arising due to an increase in the total output. Diseconomies of scale, on the other hand, occur when the output increases to such a great extent that the cost per unit starts increasing.

Answer 2

The expression depicting the powers to which the fundamental units are to be raised to obtain one unit of a derived quantity is known as the dimensional formula. It is given as, Q = MaLbTc, where, M, L, T are base dimensions with respective exponents a, b and, c. and Q is the physical quantity.