ECONOMIES OF SCALE Economies of scale are basically the increase in efficiency of production as the number of goods being produced in a firm increases. Typically‚ a firm that achieves economies of scale lowers the average cost per unit through increased production since fixed costs are shared over an increased number of goods. Fixed costs are those costs of production that do not change when output changes. There are two types of Economies of Scale: Internal economies External economies Internal
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knowledgable the particular person is. As a result‚ the productivity of the particular worker is higher compared to others. On the job training‚ practically‚ enhance the experience of the worker in the field and make less mistakes during work. Differences in ability is the one of the factors in which firms will be willing to pay higher wages to those with greater ability to do a job well based on their talent‚ intelligence‚ motivation and perseverance. For example‚ two advertising managers have equal
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SIMILARITIES AND DIFFERENCES OF THE AUSTRALIAN ECONOMY AND THE NEPALESE ECONOMY To compare the economies of two different countries‚ in this case Australia and Nepal one must look at more than just how much money each country has. There are 5 important factors for comparing; economic growth and quality of life‚ employment and unemployment rates‚ distribution of income‚ environmental sustainability‚ and the role of the government. Economic growth can be measured by 3 different figures; gross
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Afghanistan Economy Profile 2013 Economy- Afghanistan’s economy is recovering from decades of conflict. The economy has improved significantly since the fall of the Taliban regime in 2001 largely because of the infusion of international assistance‚ the recovery of the agricultural sector‚ and service sector growth. Despite the progress of the past few years‚ Afghanistan is extremely poor‚ landlocked‚ and highly dependent on foreign aid. Much of the population continues to suffer from shortages
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Transition Economies Ms. Cummins Words: 826 (without citation) 1‚006 (with) Many countries these days have switched from a command to a more market orientated economy. This process is called a transition in which many countries have taken‚ including Ecuador. Prior to being a market economy‚ Ecuador was once a command economy which is an economy that has all its decisions made by a central government such as: what to produce‚ how to produce it‚ and for whom to produce. Ecuador’s economy depends heavily
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The Planned Economy Key Characteristics What to Produce: Central Planning Committee (CPC) determines national priorities and implements 1 and 5 year plans How to Produce: CPC allocates resources to production managers so as to meet targets. Production carried out to meet the national interest‚ not profit. For Whom to Produce: Influenced by income levels but the CPC often determines those income levels as it also offered incentives for workers to do the more demanding jobs. Most often a sense of moral
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HISTORY OF GATT & THE WTO SYSTEM A BRIEF HISTORY OF THE GATT Beggar-thy-neighbour tariff policies of 1930s => WWII Bretton Woods Conference at the end of the WWII‚ finance ministers from the Allied nations gathered to discuss creation of a new monetary system that would support postwar reconstruction‚ economic stability‚ and peace. => IBRD & IMF => need for a third institution‚ ITO. 1940s: Representatives met to design a postwar trading system that would parallel the international monetary
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In the world we as people are living in today‚ our economy climate is currently in a down fall. There are not enough jobs‚ and money to keep people employed. The economy is trying to pick up in the U.S. each and every day. I’ve seen times were it’ll gradually pickup‚ then suddenly begin to fall down. The crime rate throughout the world varies throughout the city and states of our country. Population and cities are all sorts of sizes‚ some with a higher crime rate than others. Our crime rate in the
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Immigration does not hurt the Economy Since the founding of the U.S. more than 200 years ago‚ people have come here from every country on earth. Whether it be escaping an oppressive government‚ or just to find a general better way of life‚ people immigrate to the United States. Some people say that when an immigrant comes here‚ they are not used to our way of life‚ and therefore throw off our way of life and economy. They say that they cause more harm to the stable‚ tax-paying citizens of the
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and Ontario‚ represent a huge factor in the economy of the United States by being one of the major cities where trade takes place. General Motors‚ Ford and Chrysler also known as Americas ‘Big Three’ automobile companies are located in this city. The concept of External Scale Economies can help us explain why these three major companies are located in this area. Scales economies are important for a country because they represent a growth in its economy. Companies are able to produce more products
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