Fully Explain each of these terms with an example brand myop

Fully Explain each of these terms with an example..?

brand myopic

diseconomies of scale

inverse demand function

incentive contracts

average variable cost

law of diminishing returns

Solution

Brand myopia:

Brand myopia is lack of discernment of long-range perspective in planning. Managers are dependent on the Brands for the success. For them, it is the only solution for any kind of market problem. This makes the managers to repeat the process; ideas and repeating the same brand strategies without bringing in the time appropriate innovation.

Diseconomies of scale:

Diseconomies of scale occur when long run average cost curve starts rising with increasing output.

Reason of diseconomies of scale is poor communication in a large firm because they find it difficult to maintain an effective flow of information between departments, divisions or between head office and subsidiaries.

Example is as follows:

A large supermarket chain may be less responsive to changing tastes and fashions than a retailer.

Inverse demand function:

The inverse demand function is a function that shows the quantity of output demanded to the market price for that output.

For example:

Demand function, Q=200-10P

Inverse demand function, 10P=200-Q

                                              P=20-0.1Q

Incentive contracts:

The contract under which a person is responsible for the performance through fixed fees or cost reimbursement.