Sentences with phrase «economies of scale lowers»

Typically, a company that achieves economies of scale lowers the average cost per unit through increased production since fixed costs are shared over an increased number of goods.
This would tend to drive economies of scale lowering unit costs which can increase margin or keep prices in alignment with client requirements.

Not exact matches

And due to its economies of scale and zero marketing needs, it would have very low management fees, less than half a percentage point.
Williams's confidence may come from his predecessor, Rick George, who used periods of low oil prices to snap up assets, exploit economies of scale and accrue shareholder value.
The combined company will have lower costs, greater economies of scale, and the resources to provide U.S. consumers and businesses with lower prices, better quality, unmatched value, and greater competition.
In terms of the large - scale, mass - produced economy, the utility of low - skill human workers is rapidly diminishing, as many blue - collar jobs (e.g., in manufacturing) and white - collar jobs (e.g., processing insurance paperwork) can be handled much more cheaply by automated systems.
But size also matters: These gains come from a very low base, and none of these economies has the scale to be a serious «new BRIC» candidate.
During the year ended December 31, 2008, we had a gross loss of $ 1.1 million due to the lower pricing for our initial vehicles, the high materials and manufacturing costs associated with our first generation Tesla Roadster and limited economies of scale from low vehicle production volumes.
We have built a scalable platform that allows us to provide faster business insights at lower costs, develop and introduce new products quickly and leverage economies of scale to reduce costs and enable next - generation hosting architecture.
Now I know the companies manage to find some good, hungry vendors out there that will help make the product cheaper, but as soon as the economy turns around and that vendor then gets a chance to reprice the manufacturing of it, you find yourself in trouble because now you've already priced your product low to take advantage of scale of that product.
The report further stated that since companies typically offer gutter cleaning and swimming pool cleaning within a limited geographic scope in order to limit transportation expenses, there are limited benefits to economies of scale; consequently, there is a low level of market share concentration.
Industry report states that since companies typically offer swimming pool cleaning services within a limited geographic scope in order to limit transportation expenses, there are limited benefits to economies of scale; consequently, there is a low level of market share concentration.
This approach seeks to maximize long - term profits by increasing market share and lowering costs through economy of scale.
By virtue of their size within the ETF industry, the firms have the ability (through economies of scale) to charge significantly lower fees in comparison to other companies.
The Competition Bureau in its pleadings to the Tribunal not only presumed VOWs benefitted from the principle of «economies of scale» the Competition Bureau presumed (without evidence) that VOWs were so inherently cost effective that they surpassed «economies of scale» and generated such positive revenue for their operators that lower commission rates were virtually guaranteed!
«We hope to be able to quickly build up the size, achieve economies of scale and operational efficiency to lower investment costs as quickly as possible,» Lin is on the committee responsible for its non-U.S. business, said in an interview in Beijing.
Lower costs can be achieved through technological innovation and through economies of scale — a product is less costly to manufacture in large quantities.
At the time of its acquisition of Tanumbirini Station, Reza Vishkai, head of Global Farmland at Insight Investment, said: «The Northern Territory has a comparative advantage for beef production due to its geographical proximity to export markets, the low intensity pasture based production system and the economies of scale
* The dairy supply chain should improve its economies of scale in primary production and processing to achieve lower unit costs, and contribute to improved competitiveness.
As organic agriculture assumes larger shares of the market, economies of scale should be able to lower these costs significantly.
De Saint - Affrique is sure that Barry Callebaut is able to satisfy both poles of the market — due to its production know - how and its size, which result in economies of scale, Barry Callebaut is able to keep up competition in the market for lower - priced products, while at the same time its master chocolatiers guarantee innovation and make sure that the company can meet the highest customer requirements.
[18] In addition, higher participation among all children allows for economies of scale and may lead to lower costs per meal.
However the economies of scale do apply and if the food in a school is proven to be good over a sustained period, then universal takeup can lower the price while maintaining the quality or indeed further improve the quality (for example in our school when the takeup reached more than 60 % they were able to switch to entirely free range organic meats where they had previously managed just decent quality local meats).
Lower environmental footprint - due to economies of scale, less water and energy used than cloth diapers laundered at home, no impact to landfill when compared to disposable diapers
The least poorly funded schools tend to be rural schools in low income rural areas with an insufficient local tax base to support them and with high costs associated with a lack of economies of scale and large transportation costs for students.
In fact, the four biggest economies in the world all have fuel efficiency standards that will converge by 2025, encouraging research and development of lower emission vehicles on an international scale.
Organic has become much lower priced lately because increased consumer demand has brought the economies of scale.
Although some small districts may have lower salaries and transportation costs than larger districts, and opportunities for creative and cost - effective service delivery certainly exist, it is often assumed that larger districts necessarily enjoy economies of scale from which small districts can not benefit.
The lower cost per learning hour used in large organizations likely correlates to the same concepts of reuse and economies of scale that temper overall spending per employee.
For inefficient conventional universities, the low start - up costs and potentially staggering economies of scale inherent to MOOCs represent a tremendous opportunity.
Atlanta Public Schools Chief Financial Officer Lisa Bracken said the school district has higher costs for several reasons: The expense of city living drives up teacher pay; the district has «low population» schools that lack economies of scale but are kept open «due to urban traffic constraints and community needs;» many students need extra services because they have learning problems or disabilities, don't speak English fluently or come from poverty; and the district has a large unfunded pension liability with growing obligations.
Musk opened his MPII blog discussing how it was necessary to launch Tesla with the six - figure Roadster electric because of the cost of the technology and the lack of economies of scale due to low volume.
The combined company will have lower costs, greater economies of scale, and the resources to provide U.S. consumers and businesses with lower prices, better quality, unmatched value, and greater competition.
Remember, Amazon has a two or three-fold economy of scale in ebooks that makes its distribution costs the lowest in the industry.
However, the economy of scale still exists, and larger runs have a much lower cost per book.
That in turn leads to better economies of scale, more power to price ebooks at low prices, more resources to work on new features, and better Kindle prices — all of which leads to more sales.
The economies of scale and infinite shelf life now mean relatively low sales make publishing well worthwhile, and serving niche audiences that were not viable before is possible and profitable.
Even with subsidies, Amazon is going to find the 10 ″ tablet market much tougher competition — I don't think Apple will let them get substantially under them in price, and with the mother of all economies of scales (they must be consuming close to half the world's flash memory production), they certainly have room to price the iPad2 lower when the iPad 3 Retina ships.
It needs economies of scale before MER can go lower.
But it remains to be seen whether a Venture ETF can ever have the economies of scale it will need to keep its costs low and its tracking error small.
«Big banks have economies of scale which means lower pre-approval costs.»
This allows the fund to benefit from economies of scale, which help to keep the management fee low.
The main differences are that PRPPs can be set up by small businesses so that contributions automatically come off an employee's paycheque (employees would be allowed to opt out); the government also promises that PRPPs would have lower management fees because contributions would be «pooled» with others in large pension funds, creating economies of scale.
Bigger plans tend to have better economies of scale though such that fees are relatively lower for them.
ABL is # 1 or # 2 in every market they compete in, so I think they have competitive advantages through economies of scale, being vertically integrated, and also being the low - cost producer.
CAH competitive advantages include economies of scale, being a low cost provider (deep pricing discounts from drug manufacturers), and barriers to entry (enormous distribution system).
Until it grows and can take advantage of economies of scale, the SPP likely won't be able to lower its fees.
Use of master - feeder can benefit feeder fund performance as economies of scale that may be realized in managing and administering the master fund pass through as lower expenses to the feeder funds.
As for other funds offered in the plan, the complaint says that, rather than taking advantage of the plan's economies of scale, as required by its investment policy statement (IPS), to reduce the investment expenses charged to plan participants, Philips North America selected and maintained high - priced share classes of mutual funds, instead of identical lower - cost share classes of those same mutual funds which were readily available to the plan.
Admittedly, managers earn lower revenues (& have lower return - based growth) from their AUM base, so it takes longer for economies of scale to kick in.
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