MGEC40H3 Lecture Notes - Lecture 2: Horizontal Integration, Vending Machine

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Have to book a timeslot to come here physically. Horizontal boundaries how large is the firm in the output market. If you make only one type of pen, the firm has a greater horizontal boundary if you make more pens. May also speak to the variety of different things like different types of pens. Perrier also makes lemon lime and other types of drinks: a variety of output. Vertical boundaries how large is the firm along the vertical chain of production. What you allocate to your own firm and others also determines the size of your firm. If you made your own plastic for the pens, your firm is bigger. Horizontal integration: if it makes a greater quantity/variety, a firm is thought of as bigger. Features that might be present in our technology: scale economies (s. r. Falling average cost of production as the scale.

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