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Internet Exercises
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1

Go to http://www.globeinvestor.com/series/top1000/tables/companies/2004/

Economies of Scale – Differences among Industries. Check out the list of the largest Canadian firms on the McConnell-Brue-Barbiero Web site (Chapter 6). From the top ten profit list, select three firms from three different industries and discuss the likely sources of economies of scale that underlie their large size.
2

Nortel : Go to http://www.nortelnetworks.com/index.html
Bombardier : Go to http://www.bombardier.com
Scotiabank : Go to http://www.scotiabank.com/

Economic Costs and Profit. Use the McConnell-Brue-Barbiero Web site (Chapter 6) to locate the Web site of a company of your choice. Find and review the company's income statement in its annual report and classify the non-revenue items as either fixed or variable costs. Are all costs clearly identifiable as either fixed or variable? What item would be considered as accounting profit? Would economic profit be higher or lower than this accounting profit?





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