Let the production function be : Y = output‚ K = capital stock and L = labor force (population). This function is assumed to be constant returns to scale type ie if you multiply each input by a factor λ output is also multiplied by the same factor. Setting λ = 1/L: Letting output per labor and = capital per labor: This means that output per worker depends only on capital per worker. The key is‚ in the neoclassical constant returns to scale production function‚ as capital per
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including leadership‚ self-confidence‚ passion‚ creativity‚ etc. In the Roxanne Quimby case study‚ Quimby shows her leadership and creativity when expanding her business outside of Maine. She took risks and changed her traditional hand work production line into automation in North Carolina. Q2: What are the risks‚ rewards and trade-offs of a lifestyle business vs. a high-potential business that will exceed $5 million dollars in sales and substantial growth? Lifestyle business is
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impossible to give a precise and universally acceptable characterisation of it. Consequently there is a diversity of opinion regarding its function and definition. The neo classical theory of the firm‚ entrepreneurial activity is analogous to a fixed factor endowment because it sets a limit to the efficient size of the firm. The static and passive role of the entrepreneur in the neo-classical theory reflects the theory’s emphasis on perfect information‚ which trivializes management and decisions making
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preneur The Entrepreneur Team FOS Dedicated to the memory of my cousin Nowell Barlow The Entrepreneur An Economic Theory‚ Second Edition Mark Casson Professor of Economics‚ University of Reading‚ UK Edward Elgar Cheltenham‚ UK • Northampton‚ MA‚ USA © Mark Casson 1982‚ 2003 All rights reserved. No part of this publication may be reproduced‚ stored in a retrieval system or transmitted in any form or by any means‚ electronic‚ mechanical or photocopying‚ recording‚ or otherwise
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economy’s output of goods and services. GDP can measure these two things simultaneously because‚ for the economy as a whole‚ they must be equal. Put simply‚ an economy’s income is the economy’s output. Productivity can be determined by the below factors • Physical Capital per Worker. Workers are more productive if they have tools with which to work. The stock of equipment and structures used to produce goods and services is called physical capital‚ or just capital. For example‚ when woodworkers
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Introduction Entrepreneurship is a concept which is defined in many ways. The word entrepreneur means a person who undertakes from the French term called eneteprendre. In terms of business‚ the term entrepreneur means starting a business. An entrepreneur is a person who manages‚ organizes‚ and takes over all the enterprise or business risks. Other definitions include a person who has high ambition and aptitude to initiate change is known as an entrepreneur. The entrepreneurial school of thought
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activities of a business and whose concerns the business needs to address. Outsourcing means that contracting with other companies to do some or all of the function of a firm‚ like its production or accounting tasks. Insourcing means that the company internally do some or all of the functions of a firm‚ like its production or accounting tasks. Q5 – What are some of the advantages of working for others? A5 –Somebody else assumes the company’s entrepreneurial risk and provides you with benefits
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Innovative Entrepreneur: In the early phases of economic development‚ entrepreneurs have initiative to start new ventures and findinnovative ways to start an enterprise. Thus‚ innovative entrepreneurs are those who introduces new products‚ newmethod of production techniques‚ or discovers a new market or a new service or reorganises the enterprise. It is theinnovative entrepreneurs who built the modern capitalism. They are commonly found in developed countries. Theyare aggressive in nature who exhibit cleverness
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Characteristics of successful entrepreneurs 3. McGregor’s view was that theory X amounted to “treating people as children”. Should we deduce from this that a Theory X approach on part of teachers will produce the best results in the classroom? (10) Firstly‚ Theory X managers assume a number of things about the workers: they assume they don’t want to work‚ lack ambition and discipline is essential to make them work. For these reasons‚ the leadership style of theory X managers is autocratic- orders
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promotion remains one of the most consistent ventures that attract intervention and funding from donors and governments. It is also a significant driver of economic progress in any society. Needless to say‚ entrepreneurship outshines almost all other factors when evaluating the success of richest men in the American society‚ talk of Bill Gates‚ Walt Disney or any other. Thesis Statement: The Issue Successful entrepreneurship has both ups and downs. Is it all about having the necessary monetary capital
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