...Different societies have different ways of allocating scarce resources. Explain how resources are allocated in a free market economy? Scarcity is the availability of resources in limited amounts relative to unlimited nature of human wants that the resources are meant to satisfy. According to Richard G Lipsey It is the basic economic problem that is arises because people have unlimited wants and limited resources. Because of scarcity the economic decision must be made to allocate resources efficiently. When we talk of scarcity within an economic contest, it refers to limited of resources not lack of riches. These resources are the inputs of production land, labour and capital. People must make choices between different items because resources necessary to fulfil their wants are limited. These decisions are given up on want to satisfy another. Market economy enables mutual beneficial between producers and consumers and relies on markets to solve the economic problem, is called market economies. In a free market economy, resources are allocated through the market of free and directed forces of markets. This means that what to produce is determined by the consumers, how to produce is determined by producers and who gets the product is determined by the purchasing power. Markets economies work by allowing the direct interaction of consumers and producers who are pursuing their own interest. The pursuit of self interest is at the hand of free market economy In a free market economy...
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...Contents Page Introduction3 The Structure of Healthcare Management Solutions5 Conclusion9 Strategic Options11 References14 Introduction The following report will identify and critically discuss the organisational design and organisational development for Healthcare Management Solutions. This will report will also look at issues and problems which arise after the merging with another care provider. The care home industry is a fast growing sector in the UK currently. The UK care homes market is estimated to be worth £10.1 billion. Healthcare Management Solutions has been providing its service to the care home industry for many years, initially with a team of 200 employees. The Company recently merged with another care home provider which resulted in the expansion of the organisation and now the company employees about 3000 staff nationwide. It has been a positive change from the expansion perspective of the organisation however the merger with another provider had a major impact of the existing employees. “Dynamics of the merger process as an attempt to combine different organisational cultures.” (Buono 1985) The quote states that mergers can be optimistic and can help achieve better results in the company’s performance. However not all mergers may work well for employees, and for both merging organisation it is a hard time not only with merging with another company...
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