Returns to Scale Returns to scale is a concept that tries to explain the behaviour of the output in relation to the change in the total scale of operations of the firm. A change of scale of operations means a change in the total size of the firm‚ i.e. a change in both labour and capital of the firm. For determining the returns to scale‚ we need to calculate the Output Elasticity where: Output Elasticity = % change in Output/% change in all inputs The different types of returns to scales
Premium Microeconomics Function
THE LAWS OF RETURN TO SCALE The laws of return to scale explain the behavior of output in response to a proportional and simultaneous change in input. Increase in inputs proportionately and simultaneously is in fact expansion of the scale of production. Statement: “As a firm in the long run increases the quantities of all factors employed‚ other things being equal‚ the output may rise initially at a more rapid rate than the rise of increase in inputs‚ then output may increase in the same proportion
Premium Economics of production Function The Return
The law of 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
Free Economics Economics of production
Distinguish between diminishing returns and economies of scale (15 marks) In Business Economics‚ the short run is defined as the concept that within a certain period of time‚ in the future‚ at least one input is fixed while others are variable and the long run is defined as a period of time in which all factors of production and costs are variable. The law of diminishing returns is a short run concept‚ which states that increasing successive units of a variable factor to a fixed factor
Premium Economics of production Average cost Costs
the differences between diminishing marginal returns and decreasing economies of scale and cite causes and examples. Ans. The law of diminishing returns is also called the law of variable proportion‚ as the proportions of each factor of production employed keep changing as more of one factor is added. The law of diminishing returns does not imply that adding more of a factor will decrease the total production‚ a condition known as negative returns‚ though in fact this is common. A common sort
Free Economics
Explain how the law of diminishing returns and returns to scale affect a firm’s cost of production (20 Marks) The law of diminishing returns exist when increasing quantities of a variable input are combined with a fixed input‚ which eventually leads to the marginal product and the average product of that variable input will decline. Diminishing returns can affect a firms cost of production negatively in the short run. An example of this is that a business had 2 factors of production; Capital‚ which
Premium Economics of production Economics
Using named examples‚ assess the contribution of large scale water management projects in increasing water security. 15 Water security means having access to sufficient‚ safe‚ clean and affordable water. Theoretically‚ the world’s poorer countries are the most water insecure‚ suffering from both physical and economic water scarcity. One solution to tackle water insecurity is through large scale water projects for example the Three Gorges project in China‚ the South-North transfer project also in
Premium Water Water supply Drinking water
INSTITUTE OF HEALTH MANAGEMENT RESEARCH JAIPUR Reducing patient throughput time in emergency department by resolving bottlenecks Abstract Background : With increasing number of accidents and disease spectrum in today’s time ‚ emergency departments are frequently witnessing more patient’s visits . Increasing advent of health insurance has also directed increased utilisation of health care services . Yet under the surface ‚ there is a growing crisis brewing in the emergency departments
Premium Hospital Emergency department Patient
good and useful ones. That leads to the fact that there are more teens that are doing bad things than good things. Instead of doing what people feel is right‚ they decide to follow the crowd and do what is wrong. It means that teen morality is now decreasing. It is manifested through the way they behave to their parents and through their lifestyle. Firstly‚ the way teenagers behave to their parents is not good. Instead of doing good things such as : learning hard‚ helping their parents with the housework
Free Pregnancy Adolescence Sexual intercourse
Types of Measurement Scales Marc Waters MKT/441 June 9‚ 2014 Cyndie Shadow Types of Measurement Scales Introduction For this week’s assignment‚ students are to select four types of types of measurement increasing order of sophistication; they are Nominal‚ Ordinal‚ Interval‚ and Ratio. These are categories in which numbers are grouped. This paper will also demonstrate how they can be effective in surveys or questionnaires. Nominal The number we assign to some object‚ idea‚ or behavior is
Premium Level of measurement Measurement Scientific method