ECONOMIES OF SCALE When a firm moves from small scale to large scale production‚ the average cost of production of each unit falls. The reasons for which this happens are known as economies of scale – they are the benefits which result in the cost savings of large scale operations which come about when a firm expands. In other words‚ economies of scale are advantages reaped by firms engaging in large scale production. There are two types of economies of scale. They are: * Internal economies
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1 9/7/2012 English 101 On a scale from 1 to 10 "The Pain Scale" by Eula Biss is a very controversial and interesting piece of writing in which Bliss attempts to determine a scale to measure her pain. However‚ the writer begins to realize that the duty of associating pain with a number and measurement is much harder than it appears due to the fact that she is unsure what it truly means to "measure things". The practice of giving pain a set of numbers was introduced by the hospice
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The speech by Frederick Douglass tittle “What to the Slave is the Fourth of July”? Mr. Douglass addresses that from a slave point of view‚ and even to the freed African American‚ the 4th of July is a joke. Douglas uses a number rhetorical strategies to pass on his sentiments about the problem. As he continues with he’s speech‚ he changes gears on the way he addresses the audience. Mr. Douglass to his advantage uses the articulations "you" and "me"‚ "us" and "them"‚ to extend how this event is a two-sided
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The Fourth Cup Intro 1340 By celebrating the Last Supper with his apostles in the course of the Passover meal‚ Jesus gave the Jewish Passover its definitive meaning. Jesus’ passing over to his father by his death and Resurrection‚ the new Passover‚ is anticipated in the Supper and celebrated in the Eucharist‚ which fulfills the Jewish Passover and anticipates the final Passover of the Church in the glory of the kingdom The Lords Supper Luke 22:14-20 N When the hour had come‚ He reclined at
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CIA III Psychological Measurement and Statistics Likert Scale: A Critical Analysis By‚ Mahika Sharma Likert Scale: A Critical Analysis Introduction The Likert Format arises from the scale for measuring attitudes (Kaplan‚ & Saccuzzo‚ 2001)‚ the first of which was originated in 1932 by Rensis Likert (Edmondson‚ 2005). The rationale behind development of the Likert Scale by Rensis Likert was to measure psychological attitudes in a “scientific” way in 1932 and later in 1934 to expand upon the scaling
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Economies of scale Definition Reduction in long-run average and marginal costs‚ due to increase in size of an operating unit (a factory or plant‚ for example). Economics of scale can be internal to a firm (cost reduction due to technological and management factors) or external (cost reduction due to the effect of technology in an industry). Diseconomies of scale Definition Increase in long-term average cost of production as the scale of operations increases beyond a certain level
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The New Chinese Generation The story “SHUN-WAI” by Taien Ng investigates the changes and differences of the Chinese culture over time as well and between generations. The narrator Taien is Chinese-Canadian‚ and talks about her experiences in life and how they affect her. In the story Taien first describes her mother as being a strong woman‚ and how her mother would only say “You see? Mothers know best!” (Taien 54). Her mother also then switches the topic to the problems of Taien’s vegetarian
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Economies of scale The long run – increases in scale A firm’s efficiency is affected by its size. Large firms are often more efficient than small ones because they can gain from economies of scale‚ but firms can become too large and suffer from diseconomies of scale. As a firm 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
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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 are:
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Economies of scale are the main drivers of corporate gigantism in the 20th century. Economies of scale simply refers to the cost benefit achieved with an increasing output / product unit. Economies of scale exist due to the inverse relationship between quantity produced and per-unit fixed costs ; the higher the quantity produced‚ the lower the cost per unit. Economies of scale can be seen in an orange juice production. The more orders ‚ or the more fruits‚ the growers harvest‚ the more savings
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