ECONOMICS BEHIND FLIPKART

ECONOMIES OF SCALE:

As we all know that flipkart also produces some products. Among which the ear phones is the most popular product which slod  out very quickly. So as there is a huge demand for this product, the company more no of products and make it available all the time . though it produces more no of time the production cost as well as the selling price of the product goes down gradually.

ECONOMIES OF SCOPE:

 It is stated in the above stanza that flipkart also produces its own products just like earphones, pen drives, mouse, mousepads. The raw material need to made this products is plastic. Those the company produces large volumes of all the products at a time , the production cost for the company decreases gradually.

PEOPLE FACE TRADEOFF:

Sometimes when we are purchasing something , we got confused between the product which one to buy and which one to leave and we ended up with purchasing nothing . this happens with Flipkart also. Though it avails many different  models of one particular product, people got confused while selecting products and end up with purchasing nothing.

SUPPLY:

Supply is the willingness and ability of the producers to offer the goods in the market for sell at various prices. When the company Flipkart realises that there are people who are willing to pay more and more for any particular product , the supply more no of products to the market by developing the product. They upgrade the products with new features and make them available for the people who are willing to pay more for the products.

CONSUMER SURPLUS:

Flipkart almost sells all of his products at a very convenient price . which means that consumers will pay the amount which is very less as compare to the original amount . This is called as consumer surplus .