This preview shows page 9 - 11 out of 15 pages. Introducing Textbook Solutions. apopovich1. Privacy Policy3. 75. -more specialized inputs. DeVry University, Keller Graduate School of Management, National Kaohsiung First University of Science and Technology, DeVry University, Keller Graduate School of Management • NETW 583, National Kaohsiung First University of Science and Technology • ENGLISH D204, University of Massachusetts, Dartmouth • POM 682. simultaneous consumption. When does it close? Specialisation of factor of production. Textbook Chapter 6 Defining the Organization's Strategic Direction, 2. It is often present in high fixed costs industries, i.e. Are there any advantages of. Leveraged Finance is the use of an above-normal amount of debt, as opposed to equity or cash, to finance investment assets. 3. a) accounts payable b) cash c) accounts receivable d) fixed assets 3)Which one of the following … What are some of the sources of increasing returns to adoption 2 What are some, 15 out of 19 people found this document helpful. IR is the cost curve. The following points highlight the two main factors giving rise to increasing return to scale. Defining the Organization's Strategic Direction, 1. How does Genzyme's focus on orphan drugs affect the degree of competition it faces? Item 4 prohibits return-air sources as follows: "A closet, bathroom, toilet room, kitchen, garage, mechanical room, boiler room, furnace room, unconditioned attic or other dwelling unit." Which of the following statements are true? 1. What are some advantages of entering a market early? Share Your PDF File 14. 3. The factors are: 1. Samsung MicroLED Opens a New Era of Breathtaking Picture Quality and Design. ... increase importance of deposits as a source of funds. Which of the following will increase the required rate of return? Increasing economies of scale describes the phenomenon of a firm facing lower average costs as it produces more. As some communities in the United States begin to start youth sports activities again, the Centers for Disease Control and Prevention (CDC) offers the following considerations for ways in which youth sports organizations can protect players, families, and communities and slow the spread of the Coronavirus Disease 2019 … Solow noted that any increase in Q could come from one of three sources: an increase in L . NataliaUrquiza1. This relationship is shown by the first expression above. Course Hero is not sponsored or endorsed by any college or university. In that world it was reasonable to suppose, for example, that if a coffee plantation expanded pro… Hence, whenever a combination of the factors becomes unbalanced, it can be set right. Put simply, increasing returns to scale occur when a firm's output more than scales in comparison to its inputs. The result is a large output, which means lowering of costs. 1. Is there anything they could have done, 2. Favorite Answer. 3. What is more important is that it can be kept continuously at work. Example 2—return filed to claim refund. 3. Calendar Returns vs. Rolling Returns Most investors don't invest January 1 and withdraw on December 31, yet market returns tend to be reported on a calendar-year basis. REQUEST A TOUR Contact us to find out how premium content can engage your audience. The next generation of television display technology is ready for the home out of the box with the unveiling of Samsung’s 110’’ MicroLED in Korea. These economies relate to buying and selling, economy in administration, publicity and salesman­ship, benefit of research and experiments, financial, technical and managerial economies, etc. The two main reasons for electing S corporation … an increase in K . do each of the above. Dominant, Category, Dominant Design, and the Window of Opportunity for Firm Entry. The impact of the election is that the S corporation's items of income, loss, deductions and credits flow to the shareholder and are taxed on the shareholder's personal return. Strategic Management of Technological Innovation. Increasing returns mean lower costs per unit just as diminishing returns mean higher costs. Bloomberg delivers business and markets news, data, analysis, and video to the world, featuring stories from Businessweek and Bloomberg News on everything pertaining to technology (iv) Unlike agriculture, interruptions in work from natural disturbances, like changes in weather and seasons, are on a minor scale. Where the law of diminishing returns operates, every additional investment of capital and labour yields less than proportionate returns. The law of increasing returns may then be stated as under: “As the proportion of one factor in a combination of factors is increased, up to a point, the marginal product of the factor will increase.” The phrase ‘up to a point’ may be carefully noted- The increasing returns will be only up to a point. This is a higher-level function than socket.connect() : if host is a non-numeric hostname, it will try to resolve it for both AF_INET and AF_INET6 , and … 3. The benefits to a bank from making loans include. 1,000 each, the total output goes on increasing (column 2), the cost of production per pen goes on falling (column 3), and the marginal or additional output of each extra dose of Rs. -spreading of development costs. What is coring, and how can it be successful? Devry NETW583 Week 2 Discussion Latest 2016 Jan. DeVry University, Keller Graduate School of Management • MARKETING 572, DeVry University, Keller Graduate School of Management • HEALTH SER HS543. This website includes study notes, research papers, essays, articles and other allied information submitted by visitors like YOU. Share Your PPT File, Law of Constant Returns (Explained With Diagram). Are there significant switching costs that lock users into a particular social. While discussing the law of diminishing returns, it was stated that the law operated because of the dearth or scarcity of one or more essential factors of production. Increasing returns to scale c. Control of a natural resource or input d. All of the above are sources of monopoly 2. What are the major roles of a dominant category in an. Share Your Word File You can alternatively view returns as rolling returns , which look at market returns of 12-month periods, such as February to the following January, March to the following … This means increasing returns. There are three possible types of returns to scale: increasing returns to scale, constant returns to scale, and diminishing (or decreasing) returns to scale. Economies of scale concerns with mainly two variables: Cost & Output. We have already discussed the economies of large-scale production. YOU MIGHT ALSO LIKE... Macroeconomics Mid-Term 100 Terms. All of the following are sources of increasing returns and economies of scale except: THE MULTIPLIER EFFECT. As he increases the scale, production becomes more and more economical. As more and more units of the commodity are produced, the cost per unit goes on steadily falling. Hence production is carried on economically. B. spreading of development costs. All of the following are sources of increasing returns and economies of scale except?-network effects. technology and its likelihood of becoming the dominant design? Marshall’s world of the 1880s and 1890s was one of bulk production: of metal ores, aniline dyes, pig iron, coal, lumber, heavy chemicals, soybeans, coffee—commodities heavy on resources, light on know-how. Question Status: Previous Edition. Here we find out in what proportions the output c… The number of daily infections reported Monday marked the third- highest daily increase since the pandemic began, following only Friday's 3,611 and Saturday's 3,493. In 2017, developing countries received $671 billion, or … 22.4). They are all available to a big manu­facturer. Systematic risk of a security can be measured by (a)Coefficient of variation,(b)Standard Deviation,(c)Beta,(d)Range. 2. Our mission is to provide an online platform to help students to discuss anything and everything about Economics. Welcome to EconomicsDiscussion.net! Although there are other ways to determine whether a production function is increasing returns to scale, decreasing returns to scale, or generating constant returns to scale, this way is the fastest and easiest. Relevance. the multiplier effect. Newsmax.com reports today’s news headlines, live news stream, news videos from Americans and global readers seeking the latest in current events, politics, U.S., world news, health, finance, and more. 2. Production is smooth and economical, which means increasing returns. (ii) There is ample scope for the use of specialised labour. When does a window of opportunity for market entry open? Research-. TOS4. Learn about return on total assets (ROTA) and how a business can increase its ratio by increasing revenue, decreasing expenses, or reducing assets. Get step-by-step explanations, verified by experts. simultaneous consumption. 7 All of the following are sources of increasing returns and economies of scale except Multiple Choilce 01:30:42 learning by doing. 7. Later, the return may diminish. The facts are the same as in Example 1 except your friend had wages of $1,500 during the year and had income tax withheld from her wages. What are some of the sources of increasing returns to adoption? The cost of production falls, which means an increasing return. ... earn the highest return of all bank assets. Perfect Timing? UPDATES . What factors might make some industries harder to pioneer than others? Shareholder Loss Limitations An S corporation is a corporation with a valid "S" election in effect. Roadmapping Integrates Business and Technology. But the business cannot go on expanding itself indefinitely. 2. Strategic, 1. The diagram below shows the decreasing cost shown in column 3 above. It is clear that, as the scale of production increases, the cost per unit falls. 2. 1. For comparing changes in potential military strength and political preeminence, the most meaningful measure of economic … For a limited time, find answers and explanations to over 1.2 million textbook exercises for FREE! For example, a firm exhibits increasing returns to scale if its output more than doubles when all of its inputs are doubled. 1. Macroeconomics Chapter 6 42 Terms. Thus, the law f of increasing return signifies that cost per unit of the marginal or additional output falls with the expansion of an industry. Anonymous. Why the Law of Increasing Returns Operates in Industry: The law of increasing returns generally applies to manufacturing industries. Why or why not? Hence there are no costly breakdowns. Some factors cannot be increased while other factors are increased. While economies of scale refers to the cost savings that are realized from an increase in the volume of production, returns to scale is the 1) Which one of the following is a source of cash? As more and more units of the commodity are produced, the cost per unit goes on steadily … C. … There are, however, some industries where all factors required are available at any moment and in any amount. the multiplier effect. 1 Answer. 3. Suppose a fountain pen manufacturer invests successive doses of Rs. Do you think Google+ can overtake Facebook? All of the following are sources of increasing returns and economies of scale except: network effects. 3. 800-346-8798. Let’s go back to beginnings—to the diminishing-returns view of Alfred Marshall and his contemporaries. Why did the first social networking sites fail? Content Guidelines 2. All of the following are sources of increasing returns and economies of scale except: A. network effects. socket.create_connection (address [, timeout [, source_address]]) ¶ Connect to a TCP service listening on the Internet address (a 2-tuple (host, port) ), and return the socket object. There comes a time when economies change into diseconomies as the business becomes unwieldy. What are some of the ways a firm can try to increase the overall value of its technology and its likelihood of becoming the dominant design? If output increases by the same proportional change as all inputs change then there are constant returns to scale (CRS). There are several reasons on account of which the law of increasing returns operates in manufactures: (i) There is a large scope for the introduction of machinery. If the quantity of output rises by a greater proportion—e.g., if output increases by 2.5 times in response to a doubling of all inputs—the production process is said to exhibit increasing returns to scale. However, due to diminishing returns to scale, this would imply a reduction in Q / L or output per worker. c. How does the existence of industries with increasing returns to scale create an additional opportunity for the world to gain from trade? 1 decade ago. Disclaimer Copyright, Share Your Knowledge Indivisibilities of the factors of production 2. Ans:Because by specializing in a smaller number of industries, countries can produce more in each, and the costs of production will therefore fall. The law of increasing returns is the opposite of the law of decreasing returns. Thus, the law f of increasing return signifies that cost per unit of the marginal or additional output falls with the expansion of an industry. What is a dominant category? Along OX are measured the total quantity of pens manufactured, and along OY the cost of production per pen. 6. What recommendations would you offer Genzyme for the future? (2014). How does focusing on orphan drugs affect the types of resources and capabilities a. 16. Macroeconomics Test 2 60 Terms. 2. Their countries need private investment in infrastructure, energy, and water to increase jobs and wages. the multiplier effect. But, in the case of the law of increasing returns, the return is more than proportionate. Complementers? Such economies of scale may occur because greater efficiency is obtained as the firm moves from small- to large-scale … 1,000 goes on increasing (column 4). Competitors? The result is a defective combination of factors. learning by doing. It is on account of all these reasons that the law of increasing returns operates in industry. The terms 'economies of scale' and 'returns to scale' are related, but they mean very different things in economics. Are there industries in which there is no penalty for late entry? What are some of the ways a firm can try to increase the overall value of its. Leverage can enhance returns and leveraged finance is done with the goal of increasing an investment’s potential profit, assuming the investment increases in value. When is the best timing for market entry? Denoting output as Q and total revenue as TR, which of the following expressions represents marginal revenue? The result is that capital costs per unit of output are less. Item 5 prohibits "A room or space containing a fuel-burning appliance where such a room serves as the sole source of return air." There is no fixed factor of production in the long run. How does it affect the bargaining power of customers? There is little waste of materials and spoiling of machinery. As a business expands and moves towards the optimum, the return per unit goes on increasing, i.e., the cost of production is falling. 1,000 each in the production of pens and the results are as given in the schedule below: This table makes it clear that as the manufacturer goes on enlarging his business by investing successive amounts of Rs. 1. Suppliers? Nick Anderson joins TCA Editorial Cartoon Service; The U.N. report warned that climate change would hit them the hardest. What is tipping, and how can it be successful? CREATE A FOLLOWING Tribune Content Agency builds audience Our content engages millions of readers in 75 countries every day. Why does me law operate in big manufacturing industries? do only (a) and (b) of the above. (v) The operations are carried on within a small area so that supervision is easy and effective. Here man is not hampered by nature. The law of returns to scale analysis the effects of scale on the level of output. The law can be expressed in terms of costs too: Increasing returns mean lower costs per unit just as diminishing returns mean higher costs. 2. Before publishing your Articles on this site, please read the following pages: 1. What are the differences between a product and an industry platform? He goes ahead and benefits from all sorts of economies, both internal and external. As a consequence, the law of increasing returns will operate in such industries instead of the law of diminishing returns. KaTrina124. a) acquisition of debt b) purchase of inventory c) payment to a supplier d) granting credit to a customer 2) An increase in which one of the following will increase a firm's quick ratio without affecting its cash ratio? The law of returns to scale describes the relationship between variable inputs and output when all the inputs, or factors are increased in the same proportion. -coordination problems in large organizations. Are dominant designs good for consumers? Define the following terms: a. Suarez, F. F., Grodal, S., & Gotsopoulos, A. How does the number of product categories evolve in an, 2. We can show the above result with the help of a diagram too (Fig. She files a return only to get a refund of the income tax withheld and doesn't claim the earned income credit or any other tax credits or deductions. (a)Increase in Interest Rates, (b) Increase in Risk-free Rate, (c)Increase in Degree of Risk-Aversion (d) All of the above. 1. Groenveld, P. (2007). The second benefit is the development of industries due to the increasing returns to scale in intermediate inputs for a product; and the third source is the relative ease of communication and exchange of supplies, laborers and innovative ideas due to the proximity among firms. (iii) The manufacturing industries, being generally on a large scale, are able to realise economies of scale, both internal and external. The law of increasing returns operates only up to the optimum point, i.e., the point of maximum return. Expert guidance and advice are always at hand. network effects. By using the m multiplier and simple algebra, we can quickly solve economic scale questions. Answer Save. What are some of the sources of increasing returns to adoption? An increase in the stock of capital would increase both output and Q / L 122. If, however, the business is expanded beyond the optimum point, the profits will begin to decline, and the law of diminishing returns begins to operate. What is a product category? Two main reasons for electing S corporation … 14 doses of Rs unwieldy... All of the commodity are produced, the law of diminishing returns to scale ( CRS.. A Window of opportunity for market entry open along OY the cost per of! To its inputs are doubled ii ) there is ample scope for the future textbook 6... 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Doses of Rs 9 - 11 out of 15 pages Contact us to find out how premium content can your! Your audience pages: 1 highest return of all these reasons that the law increasing... Manufacturer invests successive doses of Rs level of output the factors becomes unbalanced, it can kept. For a limited time, find answers and explanations to over 1.2 million textbook exercises FREE...: 1, which means lowering of costs does me law operate in such industries instead of commodity! Such industries instead of the sources of increasing returns to adoption power of customers importance of as., some industries where all factors required are available at any moment and in any amount to help students discuss... As the business can not be increased while other factors are increased increases, the cost per unit goes steadily. Long run fountain pen manufacturer invests successive doses of Rs LIKE you he the. The U.N. report warned that climate change would hit them the hardest F., Grodal,,... 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