Economics help please...weird question?

Question

Why are pecuniary economies and diseconomies said to be the exception rather than the rule?

Answer 1

Pecuniary economies and diseconomies are the result of favourable/ unfavourable changes in prices of inputs/ raw materials due to large scale operation of a firm or an industry, especially if they are located in the form of an agglomeration. These are said to occur as exception rather than as a rule because of the following reasons;

1. Initially, the firms may have a better bargaining power to see a fall in market prices of inputs due to better bargaining power buit these powers do not last for long as sellers can also enjoy the same bargaining power with rise in their operating scales.

2. Besides, when an industry faces a favourable or unfavourable market resonse in terms of input prices or output prices, these makes hardly any difference to individual firms.

3. In modern times, technologies are becoming footlose, es[pecially with globalisation and business process outsourcing. As a result industraial agglomeration advantages in terms of pecuniary savings or increase in costs may be less likely to be significant.  There is a convergences in prices and wages across industries and regions with few exceptions.

I am not sure if you are looking for such explanations as above.

Answer 2

B/c it doesn't depend on price change

Answer 3

Pecuniary and diseconimies are not quite directly opposite in meaning.

They are both examples of poverty compared to the Western World.