1 CAPACITY UTILIZATION IN INDIAN AIRLINES Danish A. Hashim* Sir Ratan Tata Fellow Institute of Economic Growth Delhi. 110 007. INDIA. E-mail: danish_hashim@yahoo.com April 2003 Abstract The financial performance of the state -owned Indian Airlines has deteriorated since 1989- 90. The main reasons cited for the poor financial performance of Indian Airlines include: rising fuel prices‚ excess staff‚ serving uneconomic routes and increasing expenses on insurance. However‚ low capacity utilization
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expands its scale of operations‚ it is said to move into its long run. The benefits arising from expansion depend upon the effect of expansion on productive efficiency‚ which can be assessed by looking at changes in average costs at each stage of production. How does a firm expand? A firm can increase its scale of operations in two ways. Internal growth‚ also called organic growth External growth‚ also called integration - by merging with other firms‚ or by acquiring other firms By growing‚ a firm
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Introduction to Economics Exercise 4 - Outline solutions 1. Let us return to the butter market of Question 2 from Exercise 3: The demand for butter is given by: Qd = 20 – 0.05P And supply is given by: Qs = – 10 + 0.20P Where P is pence per kilogram of butter‚ Qd is the number of kilograms of butter demanded per day‚ expressed in thousands and Qs is the number of kilograms of butter supplied per day‚ expressed in thousands. (a) Take the market equilibrium calculated in Exercise
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sale 4. Stockout costs: the cost is incurred when the company ran out of certain items that are requested by customer 5. Quality costs: the cost is incurred if the features and characteristics of the product are not in accordance with customer. Economic Order Quantity is a decision model to calculate the optimal quantity of inventory to be ordered with certain assumptions. That assumption is simply no booking fees‚ storage‚ same quantity ordered on each reorder point‚ demand‚ charge ordering‚ and
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06 Student: ___________________________________________________________________________ 1. As shown in the Chapter 6 opening case‚ Whole Foods Market had to seek new strategic initiatives such as enhancing its differentiated appeal and improving its cost structure because it was losing its competitive advantage. True False 2. A firm’s business-level strategy answers the question "Where should we compete?" True False 3. The goal of a strategic position is to create the largest gap possible between
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Can HiSense Get a Handle on Costs? The Chinese economy in the 1990s underwent an unprecedented boom. As part of that boom‚ enterprises such as HiSense Group grew rapidly.1 HiSense‚ one of China’s largest television producers‚ increased its rate of production by 50 percent per year during the mid-1990s. Its goal was to transform itself from a sleepy domestic producer of television sets into a consumer electronics giant whose brand name was recognized throughout Asia. By 2004 HiSense was not only one
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References: BOOKS: K.J.Sanjit Roll No: 59 PGPME-14‚ GLIEMR o “Production and Operations Management”: Concepts‚ Models and Behavior” by Everett E. Adam‚ Jr. Ronald J. Ebert o “Operations Strategy- 2nd Edition” by Slack Nigel o “Production And Operations Management: An Applied Modern Approach” by Joseph S. Martinich o “Principles of Supply Chain Management: A Balanced Approach” by Joel D Wisner o “Operations
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References: http://classof1.com/homework-help/economics-homework-help/
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their products at roughly 30$ per item. This is found by dividing the annual revenue by the amount of units it produces and sells domestically; the total amount of dollars charged per item. In this case‚ 90 million in revenue divided by 3 million in production. (90M/3M=$30/unit) With the addition of import duties (5%) and shipping insurance ($5 per item) we see the $30 rise to 36.75 ((30+5) x 1.05). An additional 10% markup is added from the manufacturer to retailer raising the price again to 40.43
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diminishing returns only applies in the Short Run‚ when only one factor of production is variable and can be increased. The other factors of production are fixed. Thus as the variable factor of production is increased the marginal product of that factor will rise at first‚ but will at some point begin to fall. Returns to scale can only occur when no factors of production are fixed. If the quantities of all of the factors of production are increased‚ then output will also increase. However‚ the amount by
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