...In this report I will be talking about productivity. Productivity is an economic measure of output per unit of input. Inputs include labour and capital, while output is typically measured in revenues and other GDP components such as business inventories. Productivity measures may be examined collectively (across the whole economy) or viewed industry by industry to examine trends in labour growth, wage levels and technological improvement. Productivity gains are vital to the economy because they allow us to accomplish more with less. Capital and labour are both scarce resources, so maximizing their impact is always a core concern of modern business. Productivity enhancements come from technology advances, such as computers and the internet, supply chain and logistics improvements, and increased skill levels within the workforce. Productivity is measured and tracked by many economists as a clue for predicting future levels of GDP growth. Theory of the Firm To understand how firms make decisions, we must analyse the relationship that exists between profit, revenues, and costs – a relationship sometimes referred to as the Theory of the Firm. The Theory of the Firm assumes that producers are all profit maximizers. Adam Smith’s “invisible hand” of self-interest leads them to increase their revenues and decrease their costs in order to increase their profits. The theory of the firm is always being re-analyzed and adapted to suit changing economies and markets. Early economic analysis...
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...students understand the reasons for the existence of firms 2. analyse the production theory with two variable inputs 3. demonstrate the least cost factor combination While going through this analysis students may feel it is a revision of the indifference curve and the budget line. Isocost and isoquants play the same role in producer’s equilibrium as that played by the budget line and indifference curves in consumer’s equilibrium. Isocost curve is a producer’s budget line while isoquant is his indifference curve. Isoquant is also called as equal product curve or production indifference curve or constant product curve. Isoquant indicates various combinations of two factors of production which give the same level of output per unit of time. The significance of factors of productive resources is that, any two factors are substitutable e.g. labour is substitutable for capital and vice versa. No two factors are perfect substitutes. This indicates that one factor can be used a little more and other factor a little less, without changing the level of output. It is a graphical representation of various combinations of inputs say Labour(L) and capital (K) which give an equal level of output per unit of time. Output produced by different combinations of L and K is say, Q, then Q=f (L, K). Just as we demonstrate the MRSxy in respect of indifference curves through hypothetical data, we demonstrate the Marginal Rate of Technical Substitution of factor L for K (MRTS L,K) ASSUMPTION ...
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... In this topic, the role of profit in a market economy would be analyse below. Profit plays an important role in economy, it is a motivation for production activity assumed by an organisation. Every company tries to minimize their cost and maximizing their profit. This means that, profit can be an indicator for business to allocate their resources. Hence, firm can put their resources into a market that able to help them generates profit. Moreover, organisation will produce at where the market demand (Marginal revenue, MR) intersects market supply (Marginal Cost, MC). Therefore, business can make a distinction between different types of profit. (Normal profit, abnormal profit and subnormal profit) The graph below shows the equilibrium quantity where quantity of demanded equals to quantity of supplies. Allocative efficiency occurs when resources are distributed in such a way that no consumers could be made better off without other consumers becoming worse off. This means that the quantity of goods and services should produce at optimal quantity that maximises society needs and satisfaction. For example, people wants CDs more than cassette tapes. Then allocate more resources to produce more CDs than cassette tapes. To achieve allocative efficiency, marginal social benefit (MSB) has to equals to marginal social cost (MSC), in order to produce at optimal level of output. Marginal social cost is the total cost to society as a whole for producing...
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...BUSINESS SCHOOL - Undergraduate Assignment Feedback Front sheet SECTION A: |(to be completed by the student) | |Please complete Section A in Block Capitals making sure that you include your Student Number, Module Code and Group Number. FAILURE to| |do so may result in your assignment being delayed. If you are unsure of any of the above please check at the Business School Student | |Centre Reception. | |Student Number (s): |U1320055 | | | | |Programme:(e.g. Business Management) |Business Management | |Module Title: (e.g. Studying for Business) |Public Finance |Seminar Group |00 | |Module Code: |FN6002 |Word Count |1524 | I confirm that no part of this assignment. except where clearly quoted and referenced. has been copied from material belonging to any other person e.g. from a book...
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...CARIBBEAN EXAMINATIONS COUNCIL Caribbean Advanced Proficiency Examinations Economics Syllabus Effective for examinations from May/June 2010 Correspondence related to the syllabus should be addressed to: The Pro-Registrar Caribbean Examinations Council Caenwood Centre 37 Arnold Road, Kingston 5, Jamaica, W.I. Telephone Number: (876) 920-6714 Facsimile Number: (876) 967-4972 E-mail address: cxcwzo@cxc.org Website: www.cxc.org Copyright © 2008, by Caribbean Examinations Council The Garrison, St. Michael BB 11158, Barbados CXC A20/U2/08 This document CXC A20/U2/08 replaces CXC A20/U2/03 issued in 2003. Please note that the syllabus was revised and amendments are indicated by italics and vertical lines. First Issued 2003 Revised 2008 Please check the website www.cxc.org for updates on CXC’s syllabuses. CXC A20/U2/08 Contents RATIONALE ........................................................................................................................................... 1 AIMS ....................................................................................................................................................... 2 SKILLS AND ABILITIES TO BE ASSESSED ....................................................................................... 2 PRE-REQUISITES OF THE SYLLABUS .............................................................................................. 3 STRUCTURE OF THE SYLLABUS ..............................
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...Introduction Dairy production accounts for 18% of Community agricultural output of the European Union and is the pillar of all agricultural activities. European Union is the world’s primary exporter of dairy products, even with a reduction in its market share (Zervoudaki 2011). The EU dairy market is regulated by the Common Market Organization (CMO) for its milk products, one of which is the milk quota system. The milk quota system was introduced to the EU in 1984 and the idea was embraced because it offered a way to control milk production, stabilize milk price and farm income (Seville 2009; Petit 1987). As the markets become more free-flowing and globalized, disputes about the system arose. Since the implementation of the system, the negative aspects of it have reared its ugly heads. It not only put a cap on milk production,but also lost the competitive edge in the world market due to the stabilization of milk prices (Seville 2009). Therefore, the reforms made on June 26th 2003 in Luxembourg have proposed major changes to the European Common Agricultural Policy (CAP). Direct subsidies were to be independent from production and strict compliance with EU standards on environment and health was enforced. In reality, milk producers take market demand into consideration rather than the influence from subsidies to determine their production quota. (Bouamra-Mechemache and Requillart 2004). However, EU dairy market is still regulated by the mandatory quota system because the agreement...
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...Project Part 3 Betsy Whitfield ITT Tech Online MG514 – Managerial Economics Professor Michael Thirtle April 27, 2013 | | Project Part 3 The fundamental concepts of managerial economics are to decide if a production plant is needed. What will be produced, where the plant will be located, and how many employees do we need. I chose a plastic plant. One can either buy an existing manufacturing plant (Starting a Plastic Manufacturing Plant, 2013). There are a lot of plastic manufacturing plants that are fully furnished and offered for sale in various parts of the world (Starting a Plastic Manufacturing Plant, 2013). They cater to a wide variety of plastic products (Starting a Plastic Manufacturing Plant, 2013). Once you are knowledgeable of your desired product, the scientific and technical way to manufacture it and the type of business venture you are planning, as well as the location of your plant, you can start looking into the license and permit requirements of the government (Starting a Plastic Manufacturing Plant, 2013). Any transaction has two dimensions, namely a demand and a supply (http://www.buzzle.com/, 2013). In any market, the number of units of a commodity that a consumer has the will and ability to pay for becomes the demand for that particular commodity in the market and any producer that has the will and ability to produce those units, becomes the supply (http://www.buzzle.com/, 2013). It is not necessary...
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...Examiners’ commentaries 2013 Examiners’ commentaries 2013 EC1002 Introduction to economics Important note This commentary reflects the examination and assessment arrangements for this course in the academic year 2012–13. In 2014 the examination will be conducted in two parts. The rubric for Part I will read as follows: This is Part I of the examination which consists of Multiple Choice Questions. You have 90 minutes and you should attempt to answer ALL the questions. Each question has four possible answers (a–d). There is only one correct answer to each of the questions. Please mark the correct answer on the special sheet provided. The maximum mark for this part is 50. The rubric for Part II will read as follows: This is Part II of the examination. Please answer ONE question from Section A and ONE question from Section B. Part II is worth 50% of the mark and each of the questions in Sections A and B is worth 25%. The format and structure of the examination may change again in future years, and any such changes will be publicised on the virtual learning environment (VLE). Information about the subject guide Unless otherwise stated, all cross-references will be to the latest version of the subject guide (2011). You should always attempt to use the most recent edition of any Essential reading textbook, even if the commentary and/or online reading list and/or subject guide refers to an earlier edition. If different editions of Essential reading are listed,...
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...EcoNomIcs mIcroEcoNomIcs macroEcoNomIcs Course Description Effective Fall 2012 AP Course Descriptions are updated regularly. Please visit AP Central® (apcentral.collegeboard.org) to determine whether a more recent Course Description PDF is available. The College Board The College Board is a mission-driven not-for-profit organization that connects students to college success and opportunity. Founded in 1900, the College Board was created to expand access to higher education. Today, the membership association is made up of more than 5,900 of the world’s leading educational institutions and is dedicated to promoting excellence and equity in education. Each year, the College Board helps more than seven million students prepare for a successful transition to college through programs and services in college readiness and college success — including the SAT® and the Advanced Placement Program®. The organization also serves the education community through research and advocacy on behalf of students, educators, and schools. For further information, visit www.collegeboard.org. AP Equity and Access Policy The College Board strongly encourages educators to make equitable access a guiding principle for their AP programs by giving all willing and academically prepared students the opportunity to participate in AP. We encourage the elimination of barriers that restrict access to AP for students from ethnic, racial, and socioeconomic groups that have been traditionally underserved. Schools...
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... NAME: SHAMEEL P.B REGISTER NUMBER:1579 DATE OF SUBMISSION:17-09-2012 | | Assignment front sheet | Learner name | ------------------------------------------------- Assessor name | SHAMEEL P.B | Anu Antony | Date issued | Completion date | Submitted on | | 16-09-2012 | 17-09-2012 | Qualification | Unit number and title | BTEC LEVEL 7 EDSML | Unit 13 : Managing Financial Principles and Techniques | | | Assignment title | FORD MOTOR COMPANY – A CASE STUDY | In this assessment you will have opportunities to provide evidence against the following criteria. Indicate the page numbers where the evidence can be found. | Criteria reference | To achieve the criteria the evidence must show that the student is able to: | | Task no. | | Evidence | 1 | explain the importance of costs in the pricing strategy of an organisation changes | | 1.1 | | 9 | 1 | design a costing system for use within an organisation resource | | 1.2 | | 17 | 1 | propose improvements to the costing and pricing systems used by an organisation | | 1.3 | | 21& 24 | 2 | apply...
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...decline over a long period. The high initial capital costs will be recovered over a period of time. (Theron & Boshoff, 2006; p.2) In this essay, these three forms of telecommunications will be discussed in depth, in accordance to their market structures, their nature of competition, their pricing and lastly their strategic decision making. The first part of the telecommunication industry is fixed landlines. The fixed landline in South Africa is Telkom. Telkom is seen as a pure monopolist business, because their market structure only exists of a single seller, which means the market for their goods and services is dominated by themselves. The demand for their goods and services in the entire markets is the demand for the firms individual output. In this case, Telkom is the firm supplying fixed landline services to all the consumers of South Africa. Telkom has no competitors or close substitutes, and is seen as the sole provider in the whole country. Telkom has a blocked entry condition towards any competitors thus proving that Telkom is seen as a pure monopoly. According to Van Gorp, Telkom was able to set high prices which affected the South African mobile operators, the Internet providers and also other African countries because their traffic is routed via South Africa, due to alternative routes. (Van...
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...framework of either pure competition or pure monopoly. Consequently, economists began shifting their attention to middle ground between monopoly and perfect competition. One of the most notable achievements was Chamberlin’s, 1933 blending of elements of perfect competition and pure monopoly in a notion of ‘‘large group’’ monopolistic competition where there are many competing firms producing similar but different commodities which are not perfect substitutes. Because of the product differentiation each firm has a certain degree of monopoly power (i.e., faces a downward-sloping demand curve). The presence of a product group with free entry leads the industry to a long-run zero profit situation of active firms. The corresponding output is where the firms’ demand curves are tangent to their respective average cost curves. This same equilibrium corresponds to where firms...
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...CHAPTER 1: MANAGEMENT ACCOUNTING Introduction: Accounting may be broadly classified into two categories – accounting which is meant to serve all parties external to the operating responsibility of the firms and the accounting which is designed to serve internal parties who take care of the operational needs of the firm. The first category which is conventionally referred to as financial accounting, looks to the interest of those who have primarily a financial stake in the organization’s affairs – creditors, investors, employees etc. On the other hand the second category of accounting is primarily concerned with providing information relating to the conduct of the various aspects of a business like cost or profit associated with some portions of business operations to the internal parties viz., management. This category of accounting is called as Management accounting. In order to perform the primary task of decision making managers of business enterprises need information about the past, present and future in the functional areas of management such as personnel, finance, marketing and production. Right decision making has to be based on quantitative and qualitative information. The management thus constantly needs accounting information to base its decisions upon. Thus management accounting provides the information needed by management personnel. Definition: The Institute of Chartered Accountants of England has defined management accounting as: “Any form of accounting...
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...able to: • • • • Explain succinctly the meaning and definition of managerial economics Elucidate on the characteristics and scope of managerial economics Describe the techniques of managerial economics Explain the application of managerial economics in various aspects of decision making • Explicate the application of managerial economics in marginal analysis and optimisation Time Required to Complete the unit 1. 2. 1st Reading: It will need 3 Hrs for reading a unit 2nd Reading with understanding: It will need 4 Hrs for reading and understanding a unit 3. 4. 5. Self Assessment: It will need 3 Hrs for reading and understanding a unit Assignment: It will need 2 Hrs for completing an assignment Revision and Further Reading: It is a continuous process Content Map 1.1 1.2 Introduction Concept of Managerial Economics 1.2.1 Meaning of Managerial Economics 1.2.2 Definitions of Managerial Economics Managerial Economics 1 1.2.3 Characteristics of Managerial Economics 1.2.4 Scope of Managerial Economics 1.2.5 Why Managers Need to Know Economics? 1.3 1.4 Techniques of Managerial Economics Managerial Economics - Its application in Marginal Analysis and Optimisation 1.4.1 1.4.2 1.5 1.6 1.7 Application of Managerial Economics Tools of Decision Science and Managerial Economics Summary Self Assessment Test Further Reading 2 Managerial Economics 1.1 Introduction Managerial decisions are an important cog in the working wheel of an organisation. The success or failure...
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...Chapter One – Thinking As An Economist Objectives – * Define Economics – Economics is the study of how people make choices in conditions of scarcity, and of the results upon society. Economics develop models, to represent reality, to help draw correct conclusions about decisions. * Recognise economic decisions(Defn in 1.1) and define an economic naturalist – one who recognises economic decisions around them, who can apply these skills to explain our decisions, and understand the costs and benefits for groups, individuals and society. From lecture, “one who uses basic economic concepts to make sense of observations on all aspects of everyday life”. * Define the scarcity principle(definition in 1.1) and explain its implications for decision making – as resources are scarce, by choosing one thing, you forgo the choice of another. Eg – type of lunch, recreational activities. (From slide) “Although we have boundless needs and wants, the resources are limited → having more of one thing usually means having less of another” Resources – land, labour, capital, enterprise. * Define the cost benefit principle and apply it to simple economic decisions “An individual/firm/society should take an action, if the extra benefits> or = to extra costs.” Going out for pizza/study for test choice → explicit cost of pizza ($10) and Implicit cost of worse test mark (5/10 marks) *Opportunity cost=cost forgone=real cost – value of the next-best alternative to taking an action. Eg-...
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