The paper "The Economics of Money, Banking, and Financial Markets" is a wonderful example of an assignment on macro and microeconomics. One of the variable factors of production in the Coca-cola Company is labor. Labor, as a variable factor in Coca-cola production activities, offers additional input that the company requires in the expansion of short-run production. The Coca-cola Company has embraced the “ UN Guiding Principles on Business and Human Rights” that offers guidelines on how people relate with one another. Fixed factors of production in Coca-cola Company, such as capital, provide the capacity constraint in the production process.
As more quantities of variable factors of production within the firm, like labor, are significantly added to the fixed factors of production, such as capital, the variable factors of production become less productive (Melvin 180-187). b. It is referred to as the reduction of the long-run average as well as the marginal costs that arise from the increased size of the operating units (the factories or plants, for instance). Economics of scale might be interior to a business (cost reduction as a result of technical and management aspects) or outside (cost reduction as a result of the impact of technology within the industries). Application In bulk buying: Supermarket buys foodstuff in bulk and gets considerably lower average costs as opposed to buying in lesser quantities.
Marketing economies: Spending £ 200 on the national television advert promotion is only sensible for multinational firms like Starbucks or Coca Cola. When one’ s output is less, the average cost of the advertisement is significantly high. Financial economies: The big companies get lower interest rates on borrowing Container Principle: the transportation of larger quantity of commodities results to a lesser average cost. Specialization: the car production stages are intricate ad require specialization of workers.
Specialization necessitates less training of employees and a considerably effective production method.
Chen, James. Essentials of foreign exchange trading. Hoboken, N.J: John Wiley, 2009.
Melvin, Boyes. Microeconomics, 5th ed., p. 180-187. Boston, MA. Houghton Mifflin,
Mishkin, Frederic. The Economics of Money, Banking, and Financial Markets (Alternate
Edition). p. 8. 2007. Boston: Addison Wesley, 2007. Print
Rayman, R. A. A multi-gear strategy for economic recovery. Basingstoke: Palgrave
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Richard, Fellows; David, Langford; Robert, Newcombe. Construction management in
practice. Oxford England Malden, MA: Blackwell Science, 2002. Print.