Curve Labour (workers per week) | Output (toys per week) | 1 | 10 | 2 | 30 | 3 | 60 | 4 | 100 | 5 | 150 | 6 | 210 | 7 | 260 | 8 | 300 | 9 | 330 | 10 | 350 | (X-axis = labour , Y-axis =Output) (b) Average Product of Labour (APL) APL = Output/Labour Labour (workers per week) | Output (toys per week) | (Output / Labour)APL | 1 | 10 | 10 | 2 | 30 | 15 | 3 | 60 | 20 | 4 | 100 | 25 | 5 | 150 | 30 | 6 | 210 | 35 | 7 | 260
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Economies of scale Economies of scale are the cost advantages exploited by expanding the scale of production in the long run. The effect is to reduce long run average costs over a range of output. These lower costs represent an improvement in productive efficiency and can feed through to consumers in lower prices. But economies of scale also give a business a competitive advantage in the market-place. They lead to lower prices and higher profits! The table below shows a simple representation
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likely to experience one of the aforementioned concepts instead of one of the others. Economies of scale exist when average costs decline through increased production. The theory behind economies of scale is that as firms increase their output the marginal cost of the last unit produced is less than the average cost, thereby pulling down total average cost. Many economists depict average cost curves as being U-shaped: From the diagram above we can see economies of scale exist until a certain point
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their Batting Average (BA). Mr. Bonds’ batting average from 1986 to 1998 is .289, and his average from 1999 to 2004 is .329. Since a larger batting average is better, Mr. Bonds’ average BA did improve in the alleged drug-use years. However, is the difference in his Batting Average due to random variation, or is it large enough to say that he actually improved? The hypothesis test for Mr. Bonds would be: H0: Mr. Bonds’ average BA was the same before and after H1: Mr. Bonds’ average BA was different
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are costs that do vary with output E.g. electricity, raw materials Fixed + variable costs This is the cost of producing an extra unit These are costs that are not recoverable e.g. advertising = = = TC / Q VC / Q FC / Q Average Total Cost (ATC) Average Variable Cost (AVC) Average Foxed Costs (AFC) The Law Of Diminishing Marginal Returns • • • Total Product (TP) Marginal Product(MP) This is the total output produced by workers This is the output produced by an extra worker Diminishing Returns
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revenues compared to a single-pricing strategy. First the groups must be divided according to their willingness to pay. The first group will be the students. Must students expect to receive some type of discount just because they are students. The average student does not work a full time job so their income is usually lower than the other local residents. Any student with a current student identification card will receive 10% off their purchases. The second group will be the non-student locals,
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ECONOMICS PROJECT ON Selling Cost Or Advertising Expenditure Made by Roll no Names 18 Srishty Jain Abstract Selling (Advertising) Cost: Selling Cost (SC) is another outstanding feature of a monopolistic competitive market. This is in the form of advertisement expenditure. Selling Cost and Product Differentiation together enable the producer to maintain some control over market conditions and influence the shape of the demand curve
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PRINCIPLES OF ECONOMICS SUBMITTED TO: Prof. Michael Horvath SUBMITTED BY: MEHWISH AAMIR Price discrimination strategy is when a product/good is sold at different prices to different consumers, whereas single pricing strategy is one in which same price is charged to all consumers. An owner of a sub shop in a college town can adopt the price discrimination strategy in order to maximize its profit. The owner categorizes its customers in 3 types: 1) Students, who are not willing
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Assignment 2.1: Bad News Message ENG 315 – Professional Communications To: Jane Doe From: joe doe Subject: Request for Refund Date: 4/20/2014 Dear Jane, Thank you for taking the time to contact the Super-Fast Printing Company. We like hearing from our loyal customers and appreciate your business over the years. As CEO, I would like to personally thank you for your purchase of the Super-Fast Printer 2000 and for being a devoted customer for so many years. Over the years Super-Fast
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to find in a sport because weight and height affect the whole game in other sports. Baseball has many great statistical aspects. One of these great statistical aspects is batting average. A player can have the worst batting average and still be considered a legend. For example, a player can hit with a .220 batting average, but still be considered an excellent ball player due to their playmaking defensively. Although batting is important being a well-rounded player is a concept that is valued higher
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