q cheapening of materials and equipmentsexpansion


Q. Cheapening of Materials and Equipments?

Expansion of an industry increases the demand for different kinds of materials and capital equipments. This will result in large scale production of equipments andmaterials. Large scale production will decrease their cost of production and so their prices. Therefore the firms employing them will get them at lower prices.

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Managerial Economics: q cheapening of materials and equipmentsexpansion
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