long run average total cost curve and is also known as the output of long run productive efficiency. The MES is rarely a single output - more likely it is a range of output levels where average cost is minimized where the firm achieves constant returns to scale. The MES will vary from industry to industry depending on the nature of the cost structure in a particular sector of the economy. When the ratio of fixed to variable costs is very high‚ there is great potential for reducing the average cost of
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scale are the cost advantages that a business can exploit by expanding their scale of production. The effect of economies of scale is to reduce the average (unit) costs of production. Economies of scale‚ in microeconomics‚ refers to the cost advantages that an enterprise obtains due to expansion. There are factors that cause a producer’s average cost per unit to fall as the scale of output is increased. "Economies of scale" is a long run concept and refers to reductions in unit cost as the size
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Distance (cm) Time (s) Average Speed (cm/s) 1 100.0 cm (first section) 1.01 99.0 2 100.0 cm (second section) 1.12 89.3 3 100.0 cm (third section) 1.27 78.7 4 400.0 cm (entire section) 2.97 134.68 Questions: 1. Use your data from Table 1 to calculate (to the nearest tenth of a cm/s) the average speed of the ball for each trial. Record your answers in Table 1. Be sure to include Table 1 when you submit this assessment. 2. Why are the speed values in Table 1 called "average" instead of "instantaneous"
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Compared to other markets‚ why do economists consider perfect competition to be the most efficient market structure? (4 marks) In a perfect competition market price always equals the marginal cost of production and each firm will produce in its average total cost or per-unit cost. This way firms can provide consumer with goods and services at the lowest price. In contrast with other markets structures such as oligopoly and monopolistic competition (both capable of keeping prices above marginal
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Investigation of the Better-Than-Average Phenomenon No matter who we are‚ what we are or where we are‚ we are always at the centre of our own worlds and what ever we experience is always primarily filtered through our self. Some scientists contend that the usual view of oneself is at times inflated to the point where it would be considered unreal (Gazzaniga & Heatherton‚ 2003). In most ability areas studied‚ more people rate their abilities as above average‚ than below average. These findings are consistent
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This paper investigates the two extremes of market structures. A monopoly firm‚ and a firm which operates in a perfectly competitive market. We will compare features‚ similarities‚ differences‚ advantages and disadvantages. The monopoly firm I have chosen is Thames Water. This company is an accurate example‚ as it’s the sole supplier of the industry. The firm‚ is the industry. Thames Water supply water through peoples taps in and around London. Fyffe is my chosen firm in a perfectly competitive market
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Introduction to O&SCM -- Chapter 1 • Definitions • Operations and supply chain management (OSCM) is defined as the design‚ operation‚ and improvement of the systems that create and deliver the firm’s primary products and services • Concerned with the management of the entire system that produces a product or delivers a service • Operations refers to manufacturing and service processes that are used to transform the resources employed by a firm into products desired by customers •
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productivity index for a well in an undersaturated reservoir is 2.6 bbl/d/psi. Calculate the drawdown required for a production rate of 800 bbl/d of oil with an average reservoir pressure of 2500psi. Question 2: A reservoir has been producing under stabilized flow condition at 1200 bbl/d with a flowing bottomhole pressure of 1800psi. The average reservoir pressure is 3000psi. Calculate the productivity index. Assume the wells being produced above the bubble point pressure. Question 3: With a given PI
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describe them in terms of a per-unit approach: average fixed cost‚ average variable cost‚ and average total cost. Marginal cost refers to the change in total cost when we produce another unit of output. The short-run marginal cost curve is generally U-shaped‚ reflecting the law of diminishing marginal returns. Also‚ the marginal cost curve intersects both the average total cost and average variable cost curves at their lowest points. The long-run average total cost curve shows the minimum cost per
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PERFECT COMPETITION PERFECT COMPETITION Perfect competition (PC) is also called pure competition. Market structure that characterized by many small firms‚ which sells homogenous‚ easy entry and exit‚ and perfect knowledge of the market. Many small firms The exact number of firms cannot be stated‚ but there are a large number of small firms that each firm has no significant share of output. Homogenous products The products produced by firms are identical or standardized
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