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providing total revenue rises as a result

if it is operating on the downward sloping part of its average cost curve

providing total revenue rises faster than total variable costs

if it is operating on the upward sloping part of its total revenue curve

Diseconomies of scale

Rising unit costs

Diminishing marginal returns

Diminishing returns to scale

Economic welfare always increases

The problem of government failure may result

In all cases the market mechanism ceases to function

The intervention always creates a surplus

A fall in the price of chicken meat

A fall in the prices of turkey meat

An outbreak of salmonella infection in chicken meat

The publication of a health report urging people to eat white rather than red meats

Significant economies of scale in production

The existence of entry barriers to the industry

High initial capital costs in production

Extensive consumer knowledge of products and prices

A lack of consultation of shareholders by directors

Personal goals are pursued by directors that are inconsistent with the welfare of shareholders

Shareholders don't always know what management is doing

Directors get paid too much for the job they do

the market price will rise, demand will contract and total revenue will rise

the market price will rise, demand will contract and total revenue will fall

the market price will rise, demand will decrease and total revenue will fall

the market price will fall, demand will increase and total revenue will rise

Private goods

Public goods

Free goods

Externalities

Connected

Internal

External

Collaborative

of the operation of diminishing returns to a fixed factor

of the effect of diseconomies of scale

over time the price of purchased inputs rises

in the long run all costs are variable costs