saleable products per shift is improved and the average unit cost is reduced. TOYOTA has also found ways to increase the flexibility of production‚ between different types of products. At TOYOTA‚ for example‚ the former goal of being able to make a die change in a minute has been changed to a few seconds. As a result‚ completely different (much shorter) production runs that enjoy the economies of mass production have become possible. The short run average cost functions (based on newly evolved Production
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when firms increase their scale of production. Hence‚ they incur lower average costs of production‚ either through specialization or other factors. When average costs fall‚ giving the price of the good to be constant‚ profit margins of these firms will be increased. Thus‚ the individual firm benefits from internal economies of scale. External economies of scale arise when all firms in an industry experience decreasing average costs of production‚ which can be due to economies of concentration‚
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graph above‚ the average fixed cost (AFC) curve falls as output increases due to the fact that fixed costs are a decreasing proportion of total cost as output increases. Both the average total cost (ATC) and the average variable cost (AVC) curves fall‚ and then rise again. The curves start to rise after a certain point because diminishing return takes place. The distance on the y-axis between the ATC and the AVC represents the value of the average fixed cost (AFC). Just like the average variable cost
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82476 c02.3d GGS 3/17/09 15:15 r r r r r r r r r r r r r r r r r r r r r r r r r rr ECONOMIES AND SCOPE OF SCALE 2 r r r r r r r r r r r r r r r r r r r r r r r r r rr ew concepts in microeconomics‚ if any‚ are more fundamental to business strategy than economies of scale and the closely related economies of scope. Economies of scale allow some firms to achieve a cost advantage over their rivals. Economies of scale are a key determinant of market structure and entry
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households refrigerator or television set. 3. Analyse the method by which a firm can allocate the given advertising budget between different media of advertisement. 4. What kind of relationship would you postulate between short-run and long-run average cost curves when these are not U-shaped as suggested by the modern theories? 5. How do demand forecasting methods for new products vary from those for established products? AMITY SCHOOL OF DISTANCE LEARNING Post Box No. 503‚ Sector-44 Noida – 201303
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INSTITUTE OF ACCOUNTANCY ARUSHA IN COLLABORATION WITH COVENTRY UNIVERSITY (UK) ASSIGNMENT 2: KENYA AIRWAYS CASE STUDY MODULE NAME: ORGANIZATION BEHOVIOUR AND HUMAN RESOURCE MANAGEMENT MODULE CODE: LECTURERS: DUE DATE: ARUM62EKM DR ANTHONY OLOMOLAIYE & MS HELLEN MESHACK 8th JANUARY 2011 1 Coursework cover sheet – be sure to keep a copy of all work submitted Submit via the coursework at Room No. 20 Administration Building Section A - To be completed by the student – PLEASE PRINT CLEARLY
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1. Sally spends her afternoon at the art gallery‚ paying $5 for her bus fares and $11 for food and drinks rather than spending an equal amount of money to go to a movie and have a similar meal at a similar price. The opportunity cost of going to the art gallery a. b. c. d. e. is less than the opportunity cost of going to the movies. equals $5 because she would have had a meal anyway. is the money she spent. is the movie she didn’t see.* is zero‚ if there is no fee to enter the
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Sugar Solution vs. Average Density The objective of this lab was to determine the percent (by mass) of sugar in a non-carbonated beverage by measuring its density and using calibration curving showing the density and concertation of standard solution. The procedure used in this experiment was 2 50mL beaker and 10-mL volumetric pipet & pipet pump. 40 mL of deionized water was poured into a 50 mL beaker. Then 10 mL of that deionized water (0% sugar solution) was pipet‚ using the volumetric pipet
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absolute difference between the average winter temperature over the past 10 years and the current average winter temperature. If the current price of home heating oil is $1.20‚ the current price of natural gas is $2.00‚ and the average winter temperature this year is 40 degrees compared to 28 degrees over the past 10 years. A. What is the quantity of home heating oil demanded? 6.6 units B. How much did change in winter temperature effect demand in comparison to the average winter temperature? 12 units
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long run average total cost curve and is also known as the output of long run productive efficiency. The MES is rarely a single output - more likely it is a range of output levels where average cost is minimized where the firm achieves constant returns to scale. The MES will vary from industry to industry depending on the nature of the cost structure in a particular sector of the economy. When the ratio of fixed to variable costs is very high‚ there is great potential for reducing the average cost of
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