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Economy Of Scale
In microeconomics, economies of scale are the cost advantages that enterprises obtain due to their scale of operation, and are typically measured by the amount of output produced per unit of time. A decrease in cost per unit of output enables an increase in scale. At the basis of economies of scale, there may be technical, statistical, organizational or related factors to the degree of market control. This is just a partial description of the concept. Economies of scale apply to a variety of the organizational and business situations and at various levels, such as a production, plant or an entire enterprise. When average costs start falling as output increases, then economies of scale occur. Some economies of scale, such as capital cost of manufacturing facilities and friction loss of transportation and industrial equipment, have a physical or engineering basis. The economic concept dates back to Adam Smith and the idea of obtaining larger production returns through the use o ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Economies Of Scale
In microeconomics, economies of scale are the cost advantages that enterprises obtain due to their scale of operation, and are typically measured by the amount of output produced per unit of time. A decrease in cost per unit of output enables an increase in scale. At the basis of economies of scale, there may be technical, statistical, organizational or related factors to the degree of market control. This is just a partial description of the concept. Economies of scale apply to a variety of the organizational and business situations and at various levels, such as a production, plant or an entire enterprise. When average costs start falling as output increases, then economies of scale occur. Some economies of scale, such as capital cost of manufacturing facilities and friction loss of transportation and industrial equipment, have a physical or engineering basis. The economic concept dates back to Adam Smith and the idea of obtaining larger production returns through the use ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Long Run Average Cost
In economics, a cost curve is a graph of the costs of production as a function of total quantity produced. In a free market economy A market economy is an economic system in which the decisions regarding investment, production and distribution to the consumers are guided by the price signals created by the forces of supply and demand, where all suppliers and consumers ar ..., productive efficiency, productively efficient firms optimize their production process by minimizing cost consistent with each possible level of production, and the result is a cost curve. Profit maximization, Profit-maximizing firms use cost curves to decide output quantities. There are various types of cost curves, all related to each other, including total and average cost curves; marginal ("for each additional unit") cost curves, which are equal to the Differentiation (mathematics), differential of the total cost curves; and variable cost curves. Some are applicable to the short run, others to the lon ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Karl Marx
Karl Heinrich Marx (; 5 May 1818 – 14 March 1883) was a German philosopher, economist, historian, sociologist, political theorist, journalist, critic of political economy, and socialist revolutionary. His best-known titles are the 1848 pamphlet ''The Communist Manifesto'' and the four-volume (1867–1883). Marx's political and philosophical thought had enormous influence on subsequent intellectual, economic, and political history. His name has been used as an adjective, a noun, and a school of social theory. Born in Trier, Germany, Marx studied law and philosophy at the universities of Bonn and Berlin. He married German theatre critic and political activist Jenny von Westphalen in 1843. Due to his political publications, Marx became stateless and lived in exile with his wife and children in London for decades, where he continued to develop his thought in collaboration with German philosopher Friedrich Engels and publish his writings, researching in the British Mus ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Quarterly Journal Of Economics
''The Quarterly Journal of Economics'' is a peer-reviewed academic journal published by the Oxford University Press for the Harvard University Department of Economics. Its current editors-in-chief are Robert J. Barro, Lawrence F. Katz, Nathan Nunn, Andrei Shleifer, and Stefanie Stantcheva. History It is the oldest professional journal of economics in the English language, and covers all aspects of the field—from the journal's traditional emphasis on micro-theory to both empirical and theoretical macroeconomics. Reception According to the ''Journal Citation Reports'', the journal has a 2015 impact factor of 6.662, ranking it first out of 347 journals in the category "Economics". It is generally regarded as one of the top 5 journals in economics, together with the American Economic Review, Econometrica, the Journal of Political Economy, and the Review of Economic Studies. Notable papers Some of the most influential and well-read papers in economics have been published in th ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Experience Curve Effects
In industry, models of the learning or experience curve effect express the relationship between experience producing a good and the efficiency of that production, specifically, efficiency gains that follow investment in the effort. The effect has large implications for costs and market share, which can increase competitive advantage over time. History: from psychological learning curves to the learning curve effect An early empirical demonstration of learning curves was produced in 1885 by the German psychologist Hermann Ebbinghaus. Ebbinghaus was investigating the difficulty of memorizing verbal stimuli. He found that performance increased in proportion to experience (practice and testing) on memorizing the word set. (More detail about the complex processes of learning are discussed in the Learning curve article.) Wright's law and the discovery of the learning curve effect This was later more generalized to: the more times a task has been performed, the less time is required ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Economic Growth
Economic growth can be defined as the increase or improvement in the inflation-adjusted market value of the goods and services produced by an economy in a financial year. Statisticians conventionally measure such growth as the percent rate of increase in the real gross domestic product, or real GDP. Growth is usually calculated in real terms – i.e., inflation-adjusted terms – to eliminate the distorting effect of inflation on the prices of goods produced. Measurement of economic growth uses national income accounting. Since economic growth is measured as the annual percent change of gross domestic product (GDP), it has all the advantages and drawbacks of that measure. The economic growth-rates of countries are commonly compared using the ratio of the GDP to population (per-capita income). The "rate of economic growth" refers to the geometric annual rate of growth in GDP between the first and the last year over a period of time. This growth rate represents the trend in ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Learning-by-doing (economics)
Learning-by-doing is a concept in economic theory by which productivity is achieved through practice, self-perfection and minor innovations. An example is a factory that increases output by learning how to use equipment better without adding workers or investing significant amounts of capital. The concept of learning-by-doing has been used by Kenneth Arrow in his design of endogenous growth theory to explain effects of innovation and technical change. Robert Lucas, Jr. (1988) adopted the concept to explain increasing returns to embodied human capital. Yang and Borland (1991) have shown learning-by-doing plays a role in the evolution of countries to greater specialisation in production. In both these cases, learning-by-doing and increasing returns provide an engine for long run growth. Recently, it has become a popular explaining concept in the evolutionary economics and resource-based view (RBV) of the firm. The Toyota Production System is known for Kaizen is concept r ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Corporate Finance
Corporate finance is the area of finance that deals with the sources of funding, the capital structure of corporations, the actions that managers take to increase the Value investing, value of the firm to the shareholders, and the tools and analysis used to allocate financial resources. The primary goal of corporate finance is to Shareholder value, maximize or increase valuation (finance), shareholder value. Correspondingly, corporate finance comprises two main sub-disciplines. Capital budgeting is concerned with the setting of criteria about which value-adding projects should receive investment funding, and whether to finance that investment with ownership equity, equity or debt capital. Working capital management is the management of the company's monetary funds that deal with the short-term business operations, operating balance of current assets and Current liability, current liabilities; the focus here is on managing cash, inventory, inventories, and short-term borrowing an ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Drag (physics)
In fluid dynamics, drag (sometimes called air resistance, a type of friction, or fluid resistance, another type of friction or fluid friction) is a force acting opposite to the relative motion of any object moving with respect to a surrounding fluid. This can exist between two fluid layers (or surfaces) or between a fluid and a solid surface. Unlike other resistive forces, such as dry friction, which are nearly independent of velocity, the drag force depends on velocity. Drag force is proportional to the velocity for low-speed flow and the squared velocity for high speed flow, where the distinction between low and high speed is measured by the Reynolds number. Even though the ultimate cause of drag is viscous friction, turbulent drag is independent of viscosity. Drag forces always tend to decrease fluid velocity relative to the solid object in the fluid's path. Examples Examples of drag include the component of the net aerodynamic or hydrodynamic force acting opposite to the di ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Beam (structure)
A beam is a structural element that primarily resists Structural load, loads applied laterally to the beam's axis (an element designed to carry primarily axial load would be a strut or column). Its mode of Deflection (engineering), deflection is primarily by bending. The loads applied to the beam result in reaction forces at the beam's support points. The total effect of all the forces acting on the beam is to produce shear forces and bending moments within the beams, that in turn induce internal stresses, strains and deflections of the beam. Beams are characterized by their manner of support, profile (shape of cross-section), equilibrium conditions, length, and their material. Beams are traditionally descriptions of building or civil engineering structural elements, where the beams are horizontal and carry vertical loads. However, any structure may contain beams, for instance automobile frames, aircraft components, machine frames, and other mechanical or structural systems. In th ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Square–cube Law
The square–cube law (or cube–square law) is a mathematical principle, applied in a variety of scientific fields, which describes the relationship between the volume and the surface area as a shape's size increases or decreases. It was first described in 1638 by Galileo Galilei in his ''Two New Sciences'' as the "...ratio of two volumes is greater than the ratio of their surfaces". This principle states that, as a shape grows in size, its volume grows faster than its surface area. When applied to the real world, this principle has many implications which are important in fields ranging from mechanical engineering to biomechanics. It helps explain phenomena including why large mammals like elephants have a harder time cooling themselves than small ones like mice, and why building taller and taller skyscrapers is increasingly difficult. Description The square–cube law can be stated as follows: Represented mathematically: A_2=A_1\left(\frac\right)^2 where A_1 is the origina ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Natural Monopoly
A natural monopoly is a monopoly in an industry in which high infrastructural costs and other barriers to entry relative to the size of the market give the largest supplier in an industry, often the first supplier in a market, an overwhelming advantage over potential competitors. Specifically, an industry is a natural monopoly if the total cost of one firm, producing the total output, is lower than the total cost of two or more firms producing the entire production. In that case, it is very probable that a company (monopoly) or minimal number of companies (oligopoly) will form, providing all or most relevant products and/or services. This frequently occurs in industries where capital costs predominate, creating large economies of scale about the size of the market; examples include public utilities such as water services, electricity, telecommunications, mail, etc. Natural monopolies were recognized as potential sources of market failure as early as the 19th century; John Stuart M ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
