Law of Diminishing Returns (0)

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Managerial Economics

What is the law of diminishing returns? Why this proposition is called a “law”?

It states that, at some point- when we add more variable input to a fixed input- our marginal product will start to decrease as the newly added variable input is being added to an already increasingly scares input. This can be explained by citing an example, if we add more workers to a job, such as assembling a car. At some point, adding more workers would cause problems, as they would be getting in each other 's way, or workers wold often find themselves waiting for access to specific part or tool required for the job.

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Law of Diminishing Returns

Law of Diminishing Returns logistika inglise keel

Sarnased õppematerjalid

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Pure Competition

loss minimizing case, costs are still covered Shut-down case This is when the amount of lost revenue that a firm gets from producing a unit is even greater than the cost of shutting down the company. · P = MR < AVC < ATC · The only time when a company should shut down! All the costs are above the equilibrium price line, meaning that the company will just lose money by producing its goods. Diminishing returns, production costs, product supply Law of diminishing returns causes marginal cost to decrease at a decreasing rate and eventually rise · When MC firms only produce more if price increases with output Supply only when price is equal to or greater than minimum AVC; meaning that the firm is profitable or that its losses are less than its fixed cost Changes in Supply

Micro_macro ökonoomika

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Cost Accounting notes

Cost Accounting. Chapter 1 Management accounting measures, analyzes, and reports financial and no financial information that helps managers make decisions to fulfill the goals of an organization. Financial accounting focuses on reporting to external parties such as investors, government agencies, banks and suppliers. It measures and records business transactions and provides financial statements that are based on GAAP. Cost accounting measures, analyzes, and reports financial and no financial information relating to cost of acquiring or using resources in an organization. Value-chain analysis: sequence of business functions in which customer usefulness is added to products and services. 1. Research and development 2. Design of products, services, or processes 3. Production 4. Marketing 5. Distribution 6. Customer service. Supply chain describes the flow of goods, services, and information from the initial sources of materials and services to the delivery of products to consumers, regar

Majandus

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The cost of production

Calculations of LRAC With a little mathematics, the long run cost functions can be calculated. It is easier to use equations rather than tables and graphs. If consumer behavior, production and cost are understood, you can then think about how to achieve your objectives. Economic (opportunity) cost Explicit costs Implicit costs Normal profit Economic profit Short run Long run Total product (TP) Marginal product (MP) Average product (AP) Law of diminishing returns Fixed costs Variable costs Total cost Average fixed cost (AFC) Average variable cost (AVC) Average total cost (ATC) Marginal cost (MC) Economies of scale Diseconomies of scale Short-run Production Costs Summary of definitions Total Fixed Costs = TFC Total Variable Costs = TVC Total Costs = TC Average Fixed Costs = AFC Average Variable Costs = AVC Average Total Costs = ATC Marginal Cost = MC

Micro_macro ökonoomika

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Marketing

Indroduction This assignment will examine Britain's car market and shows how the external and internal environment factors influences it, mostly on Mini Ltd. External marketing environment is divided into 4 different groups; socio-cultural, economic, technological and political factors. Internal marketing evironment is divided into 6 different groups; which are customers, competitors, suppliers, distributors, employees and stakeholders. Also this assignment is provided with the SWOT analysis, where strengths, weaknesses, opportunities and threats are examined. Mini Mini was at first manufactured by the Austin Motor Company Ltd. In 1957 Alec Issigonis was commissioned to develop a new type of small car. At the same year were the first sketches of Mini made and after that the Mini model is been created from wood and also the most important mechanical parts for Mini has been developed. Four years later the Mini hits the streets. In 1965 the first Mini with an automatic transmission ent

Business english

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Demand and Supply

Change in quantity supplied · A change in the price of the good causes a change in the "quantity supplied." · The change in the price of the good causes a "movement on the supply function," not a change or "shift of the supply function." Change in supply There are many factors that influence the willingness of producers to supply a good. technology prices of inputs returns in alternative choices taxes, expectations, weather, number of sellers, . . . Qs = fs (Pinputs, technology, . . .) · Qs = fs ( Pinputs, technology, number of sellers, taxes, . . .) · A change in the price [P] causes a "change in quantity supplied;" · a change in any other variable causes a "change in supply" Equilibrium Webster's Encylopedic Unabridged Dictionary of the English Language defined

Micro_macro ökonoomika

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Cialdini raamat

More praise for Influence: Science and Practice! "We've known for years that people buy based on emotions and justify their buying decision based on logic. Dr. Cialdini was able, in a lucid and cogent manner, to tell us why this happens." --MARK BLACKBURN, Sr. Vice President, Director of Insurance Operations, State Auto Insurance Companies "Dr. Cialdini's ability to relate his material directly to the specifics of what we do with our customers and how we do it, enabled us to make significant changes. His work has enabled us to gain significant competitive differentiation and advantage" -LAURENCE HOF, Vice President, Relationship Consulting, Advanta Corporation "This will help executives make better decisions and use their influence wisely ... Robert Cialdini has had a greater impact on my thinking on this topic than any other scientist." -CHARLES T. MUNGER, Vice Chairman, Berkshire Hathaway, Inc.

Psühholoogia

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Introduction of SCM

INTRODUCTION OF SUPPLY CHAIN MANAGEMENT (SCM) A supply chain is a network of facilities and distribution options that performs the functions of procurement of materials, transformation of these materials into intermediate and finished products, and the distribution of these finished products to customers. Supply chains exist in both service and manufacturing organizations, although the complexity of the chain may vary greatly from industry to industry and firm to firm. Supply chain management is typically viewed to lie between fully vertically integrated firms, where the entire material flow is owned by a single firm and those where each channel member operates independently. Therefore coordination between the various players in the chain is key in its effective management. Cooper and Ellram [1993] compare supply chain management to a well-balanced and well-practiced relay team. Such a team is more competitive when each player knows how to

Kategoriseerimata

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Monopolistic competition

Monopolistic Competition Market Power Firms in monopolistic competition or imperfectly competitive markets are more likely to have limited market power because there are many firms with differentiated products (there are substitutes) and there is relative ease of entry and exit into the market Market Power among Sellers · Monopolistic competition - a market with a large number of sellers and relatively free entry; each firm "differentiates" its product. · Oligopoly - a market characterized by significant barriers to entry and "a few "sellers who recognize their interdependence in the market; products may be homogeneous or differentiated. Monopolistic Competition · Large number of sellers · relative ease of exit / entry · products are differentiated actual differentiation pe

Micro_macro ökonoomika

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