ECONOMIES OF SCALE AND ECONOMIES OF SCOPE Economies of scale are reductions in average costs attributable to production volume increases. They typically are defined in relation to firms‚ which may seek to achieve economies of scale by becoming large or even dominant producers of a particular type of product or service. A distinction can be made between internal and external economies of scales. Internal economies of scale occur when a firm reduces costs by increasing production. External economies
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With this being said asking the CLO to reduce a department size can be a difficult task. Asking the CLO to train the employees so that redundancies are reduced‚ or to ensure that that employees are focused and showing signing of a higher learning curve would have been a better task to have asked. In this case the CLO could probably do a study analysis of employee past performance appraisals. After doing the study he would want to rate them and then sort them out in terms of performances and rating
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minimum efficient scale (MES)The minimum efficient scale (MES) is the output for a business in the long run where the internal economies of scale have been fully exploited. It corresponds to the lowest point on the 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
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to reduce its average costs and become more competitive. Long run costs The firm’s long run average cost shows what is happening to average cost when the firm expands‚ and is at a tangent to the series of short run average cost curves. Each short run average cost curve relates to a separate stage or phase of expansion. The reductions in cost associated with expansion are called economies of scale. Internal and external economies and diseconomies of scale External economies and diseconomies
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Py = $10 Px = $12.50 M = $ 500 PxX + PyY = y 12.50x + 10y = 500 or y = 50 – 1.25x d. What combination of X and Y will the consumer choose? Why? Consumer choose 20 units of X and 25 unit of Y. Indifferent curve II is tangent to budget line LZ. No other combination costing $500 provides more utility than X = 20‚ Y = 25 e. What is the marginal rate of substitution at this combination? MRS= PxPy= $12.50$10=1.25 f. Explain in terms of
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This is shown in the article “What is The Great Gatsby Curve?” by David Vandivier when he talks about the Great Gatsby Curve and predictions for success and wealth for people in America. In the article it talks about how the rich have more of an advantage and opportunities than the poor‚ but just because they have more resources and advantages
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THE GOOD AND BAD EXPERIENCE BEING A PJJ STUDENT Knowledge is what matters in life. There should be no reason for not studying and learning. As technology continues to evolve‚ there are many ways to learn despite of be in the situation you are currently dealing with. One of the ways is ‘Distance Learning Programme’ or PJJ. Distance learning comes as a blessing to students who want to study further while continuing with jobs or who might not be able to attend a full-time course for various reasons
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Financial Markets – Focus Points Since this is a very extensive course I have compiled a list of the most important subjects‚ those which you should place the greatest emphasis on when studying for the final exam. Please note that this is not an exhaustive list and the final exam may include questions based on topics not directly mentioned below. This list should supplement the questions/problems from the practical sessions – which you should study carefully. Do not get intimidated by the number
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rticle – “BEGINNERS GUIDE TO FINANCIAL STATEMENTS.” * WWW.SEC.GOV - EDUCATION – PUBLICATIONS Write an Executive summary – maximum 2 pages and include definitions WITHIN the summary for the following: Debt-to Equity Ratio‚ Working Capital‚ Current vs. Long Term Debt‚ Enterprise value. SESSION 3- BENCHMARKING A.” The search for those practices that will lead to superior performance for the company.” 1. Benchmarking the competition 2. Benchmarking outside the industry
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Question 1 0 out of 2 points | | | Opportunistic behavior on the part of the employer is possible because:Answer | | | | | Selected Answer: | employees often reduce their effort level if they are important to the company. | Correct Answer: | contracts are often incomplete and leave room for implicit understandings between the two parties. | | | | | Question 2 0 out of 2 points | | | In long-term job attachments‚ a worker’s wage:Answer | | | | | Selected Answer:
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