1. What is meant by the term ‘economies of scale?’ The increase in efficiency of production as the number of goods being produced increases. Typically, a company that achieves economies of scale lowers the average cost per unit through increased production since fixed costs are shared over an increased number of goods. 2. Explain why economies of scale are important to companies such as McDonald’s and GBK.
The profitability of alternative crops (e.g. carrots) rises. 3. A poor potato harvest 4. Farmers expect the price of potatoes to rise (short-run supply falls).
a bolt needed has increase in price for smaller qty needed to complete total production run. 1. Explain its relationship with total cost. The relationship between marginal cost and total cost is that both are the total cost in producing a unit of goods. C. Define profit.
Exy = (% change in quantity demanded of y)/(% change in price of x) If the result is greater than zero, the item is a substitute good or service. This relationship is one in which the item can easily replace the other. If the price of Dorito’s increases by 10% and the demand for Pringles increases by 4.4%, this relationship is shown to be positive or greater than zero, .044/.10 = .44, therefore they are substitute goods. If the sale of goods move in the opposite direction of each other resulting in a negative number or a number less than zero, the relationship is a compliment good or service. An example is that of hamburger meat and hamburger buns, when the price of ground beef increases by 30%, the price of hamburger buns decreases by 40%.
1. Evaluate the trends affecting the cattle ranching industry Prices and costs of beef are a trending issue in the industry and are varied with production. The cost of beef has declined for the ranchers but remained high for the consumers. The prices for the calves turned out to be less than the cost of rising calves. Unfortunately, Ranchers had to change their strategy from focusing on making income to minimizing losses.
But by introducing subsidies you allow the producer to either increase the amount of resources they have available or gives them to opportunity to increase their capacity and subsequently rising output. This will benefit both parties as the producers will feel higher profit and the consumers will feel a rise in supply and a fall in prices as the savings from the subsidy can be passed on to the consumers. This will lower living costs and therefore lead to an overall better standard of living for Britain. As the subsidy reaches the producer it allows them to increase supply causing the shift to the right from S (pre subsidy) to S1 (post subsidy). This means as shift in the equilibrium point to a point that is further along the quantity axis and lower on the price axis meaning that the overall quantity of sales has risen but the price per good has fell.
They take up a big chuck in the market but with McDonalds being such a big well-known brand this will not affect us that much. The USP of this product is the sweet succulent taste of the BBQ chicken and sauce that comes up after you eat the burger. The price Of all the aspects of the marketing mix, price is the one, which creates sales. The price of an item is clearly an important determinant of the value of sales. Researching consumers' opinions about pricing
Mos Burger which is another competitor, with 25 percent of market share, is a huge threat for Burger King as well. Even though burgers are not exactly Japanese type of food, the fast food market is maturing, thus making it hard to gain profit, even for big companies like McDonalds. The fact that Japanese customer is in great supply of burgers lowers demand for them, making it harder to sell. Why have Burger King and other companies in the case decided to enter foreign markets? Why have they chosen Japan?
The high fat of the meat is important as the authors argue that the selling of mutton flaps to the peoples of the Pacific Islands “involves political, ethical, and health issues of important to us all (Errington and Gewertz, 1). Whenever the “other” (non White) is involved in the less than admirable aspects of food production or trade, it is usually in the role of underprivileged farm workers or illegal immigrants (Errington and Gewertz, 2). This is one of the areas where mutton flap production and consumption differs from that of other higher quality cuts of meat. Mutton flaps are produced on regulated farms by (White) Australians and New Zealanders, where the working conditions are sensible (Errington and Gewertz, 4). After the mutton flaps are processed, however, they are sent away to be consumed by the (Brown) people of the Pacific Islands (Errington and Gewertz).
Investment projects, via the multiplier effect should result in an increase in the GDP of the economy; However in order to undertake investment, there must a high savings ratio must be obtained as it is essential for the accumulation of capital. Labour plays a critical role in achieving economic growth. The higher the number of workers there is in an economy should lead to economic growth. If there are more people working and unemployment levels are relatively low, then there is likely to be the achievement of economic growth as human resources