A New Measure of Minimum Efficient Plant Size in UK Manufacturing Industry

Dados Bibliográficos

ID9724908
AutoresBruce Lyons (autor correspondente)
Ano1980
Volume47
Fascículo185
Páginas19
Data de publicação1980-02-01
Peer ReviewedSim
Open AccessNão
TipoARTICLE
PeriódicoEconomica (JOURNAL)
Identificadores do periódicoISSN: 0013-0427 • E-ISSN: 1468-0335
EditoraJSTOR (PUBLISHER)
DOI10.2307/2553165
OpenAlexW2059718046
IdiomaEN
Citações recebidas12
Referências citadas8

factor in studies of industrial economics since Bain's seminal work on barriers to new competition (Bain, 1956). The weight of empirical evidence (see the studies cited in Section II below) indicates that long-run average cost curves are horizontal over large ranges of output; in which case the point at which they are first minimized becomes important in determining, among other things, the barriers to entry into an industry. Four deterrent effects of minimum efficient size on entry may be identified. (a) The larger the minimum efficient plant size (henceforth, MESP) in relation to the size of the market, the greater are the difficulties of attracting enough customers away from their existing suppliers to reap full production economies. (b) For any given price elasticity of demand, an entrant will reduce the price of the product more, and/or provoke greater retaliation by existing firms, the greater is the size of his addition to productive capacity (as determined by the MESP in industry)

Commerce · Competition (biology) · Econometrics · Economics · Empirical evidence · Industrial organization · Market Size · Measure (data warehouse) · Microeconomics · Point (geometry) · Price elasticity of demand · Product (mathematics) · Production (economics) · Work (physics) · Computer Science · Consumer Market Behavior and Pricing · Engineering · Firm Innovation and Growth · Mathematics · Merger and Competition Analysis