and correlation? 42. What is test marketing? 43. What is production function? State its managerial uses. 44. State the types of production function. 45. What is meant by returns to scale? 46. State Cobb-Douglas production function. 47. What is economies and diseconomies of scale? 48. What are Isoquants? 49.
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Economies of scale are the advantages in average cost reductions that can be achieved through the growth of a plant‚ firm‚ or an entire industry. There are various different types of economies of scale‚ all of which can be grouped together into either internal or external. Internal economies occur within a plant or firm‚ and external economies are the consequence of the growth of the entire industry or region. Economies of scale are therefore the advantages of a growth. However‚ we must also consider
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Production Cost Analysis and Estimation Applied Problems Vada Taborn BUS 640: Managerial Economics Instructor: Isabel Wan Date August 10‚ 2015 Production Cost Analysis and Estimation Applied Problems Problem 1: William is the owner of a small pizza shop and is thinking of increasing products and lowering costs. William’s pizza shop owns four ovens and the cost of the four ovens is $1‚000. Each worker is paid $500 per week. Workers Employed | Quality of pizzas produced per week 0 0 1
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or a system. Acquisition of new capacity requires extensive planning‚ and often involves significant expenditure of resources and time. Capacity decisions must be made in light of several long-term issues such as the firm’s economies and diseconomies of scale‚ capacity cushions‚ timing and sizing strategies‚ and trade-offs between customer service and capacity utilization. Planning capacity across the organization Accounting provide cost information needed to evaluate capacity expansion Finance
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CFA® Level I – Economics Demand and Supply Analysis: The Firm www.irfanullah.co Graphs‚ charts‚ tables‚ examples‚ and figures are copyright 2012‚ CFA Institute. Reproduced and republished with permission from CFA Institute. All rights reserved. 1 Contents and Introduction 1. Introduction 2. Objectives of the Firm 3. Analysis of Revenue‚ Costs and Profits www.irfanullah.co 2 2. Objectives of the Firm • The objective of the firm should be to maximize shareholder value • This reading assumes
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References: Assaf‚ A.G.‚ 2010. Bootstrapped scale efficiency measures of UK airports. Journal of Air Transport Management 16‚ 42–44. Assaf‚ A.G.‚ 2011. Portuguese tour operators: a fight for survival. Journal of Air Transport Management 17‚ 155–157. Banker‚ R.D.‚ Charnes‚ A.‚ Cooper‚ W.W.‚ 1984. Some models for estimating technical and scale inefficiencies in data envelopment analysis. Management Science 30‚ 1078–1092. Barros‚ C.P.‚ Peypoch‚ N
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loyalty of existing customers. We also consider the costs of implementing each CRM type separately as well as both types simultaneously. We show that the optimal CRM implementation strategy depends on the initial mass of loyal customers and diseconomies of scale in simultaneous implementation. We also find that the two types of CRM technologies are substitutive rather than complementary in generating revenue. We discuss why it is difficult to avoid overinvestments in CRM when the nature of the investments
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Topic 1- Exam Style Notes 1.1 Nature of Business Activity What is a business? * Business- decision making organisation using inputs to produce goods and services which satisfy the needs and wants of a customer * Factors of production- “CELL” 1. Capital- used to produce goods (non natural‚ eg machinery) 2. Enterprise- management/planning of factors of production 3. Land- natural resources; renewable and non renewable 4. Labour- physical and mental efforts of people
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variable costs 3.3 Average costs 3. Types of cost curves 4.4 Marginal cost curve 4.5 Average cost curves 4. Costs in Short run and in the Long run 5.6 Short run 5.7 Long run 5.8 Economies of scale 5. Cost analysis in the real world 6.9 Economies of scope 6.10 Experiential learning & technological advances 6.11 Many dimensions 6.12 Unmeasured costs 6. Conclusion SUMMARY REFERENCES
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greater value than the sum of its parts as a result of enhanced revenues and the cost base. • Economies of Scale: Economic of scale refer to the reduction in unit cost achieved by producing a large volume of a product. Horizontal mergers aim at achieving economies of scale. This phenomenon continues while the firm grows to its optimal size‚ after which a firm experiences diseconomies of scale. • Economies of Vertical Integration: Economies of vertical integration are achieved in vertical mergers
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