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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Politics and the Economy The social institutions of economy and politics are intricately intertwined and they always will be. Economies organize how a society makes and distributes its goods and services to other member’s in society. Goods are things that are made or grown and services are specific things that someone does for another person. Goods and services are given in exchange for some type of payment. Politics is the social institution through which power is acquired‚ usually referring
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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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Token economy programmes are a form of behaviour modification based on the principles of operant conditioning. They are used in prisons to encourage the reduction of anti-social behaviour and criminal behaviour; they involve awarding tokens to offenders if a desired behaviour is performed. The tokens may then be exchanged for various rewards. The aim is for the desired behaviour to be repeated. As a treatment it involves setting out a range of desirable behaviours and reinforcing the offender whenever
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market I am choosing from the Scottish economy is the housing market. No matter where you go there is always a demand for housing. There are 5‚295‚000 people living in the Scotland but not enough housing for them all. Many people struggle to get into affordable housing due to the scarcity‚ since many were allowed to be sold to tenants while Maggie Thatcher was in power. Unfortunately for us the money raised by privatising these houses was not put back into the economy to build new ones. This is why much
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The Philippines is located in South East Asia and the Philippines economy has been industrialized in the recent times. In terms of the purchasing power parity it ranked 24th according to the World Bank. The sectors that are of key importance in the Philippines Economy are agriculture‚ industry and mining each of which can be detailed under the following heads; Agricultural sector contributes about 17.1% of the GDP‚ Industrial Sector contributes 18.1% in the GDP. “The Gross Domestic product (GDP)
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into office. During his presidency his administration failed to design efficient policies and take action to stem guerrilla group activities within the country’s borders. These failures contributed to the country’s economic collapse. After Peru’s economy collapsed a member of the American Popular Revolutionary Alliance Party (APRA) named Alan Garcia was elected president. Alan Garcia put reforms and an
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Afghanistan Economy Profile 2013 Economy- Afghanistan’s economy is recovering from decades of conflict. The economy has improved significantly since the fall of the Taliban regime in 2001 largely because of the infusion of international assistance‚ the recovery of the agricultural sector‚ and service sector growth. Despite the progress of the past few years‚ Afghanistan is extremely poor‚ landlocked‚ and highly dependent on foreign aid. Much of the population continues to suffer from shortages
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The absurdity of the methanol economy I had not actually heard of it‚ but a colleague mentioned it in the course of conversation: George Olah‚ the Hungarian-born U.S. chemist whose research is focused on hydrocarbons‚ strongly advocates the introduction of methanol as a chemical energy carrier. The basic idea is that‚ to be sure‚ we need to find a replacement for the short chain alkanes that constitute the major part of gasoline‚ aviation spirit‚ etc.‚ and which are used as the source of motive
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people (INEI 2013; USAID/Peru 2012b; World Bank 2007). According to the World Bank‚ the economy of Peru is classified as upper middle income and is the 42nd largest in the world (World Bank 2014a). Peru is a market oriented economy with a high level of foreign trade. Peru is a mega diverse country‚ however these natural resources have not been used efficiently to develop the economy‚ and the national economy has relied on mining since colonial times‚ as well as agriculture‚ fishing and manufacturing
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