...described as the ability and the willingness to buy a specific quantity of a product at a given price (Grant, 2002). The demand curve is downward sloping and varies inversely with price. Price changes cause a movement along the demand curve while changes in the factors that influence demand cause a movement of the curve itself. Supply is described as the ability and willingness to supply a specific quantity of a product at a given price (Grant, 2002). The supply curve is upward sloping and varies directly with price. Price changes cause a movement along the demand curve while changes in the factors that influence supply cause a movement of the curve itself. A dynamic global economic environment with continued innovation leading to new and improved technologies entails ever changing demand and supply situations for a large number of goods and services on offer to consumers presently. This paper examines the changing demand and supply considerations for 10 such products with a synthesis as to whether demand/supply for/of them will increase/decrease in the years to come. Before we proceed, it is important to understand what is meant by demand and supply in economic terms. FACTORS THAT WILL BE AFFECTING the DEMAND FOR CONVENIENCE FOODS IN the NEXT SEVERAL YEARS Demand for convenience foods (like those manufactured by the Peterborough based Perkins Food Company) is expected to rise considerably over the next few years, which will make the demand curve shift...
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...prefer to watch a show on their own time rather than watching a particular show when it airs on television. DirecTV and Dish Network are the two largest satellite television providers to offer these services. DirecTV offers better home entertainment and a superior DVR over Dish Network. With over 19 million US subscribers, DirecTV is the leader in satellite television services and for good reason (" How Many," 2013). DirecTV offers a better quantity of channels compared to Dish Network. DirecTV offers many channels that Dish Network does not. DirecTV offers channels like “TV One” and “The Audience Channel”. They also offer 20 more “channel favorites” on average compared to Dish Network. One of the most important channel additions includes the NFL Sunday ticket. While Dish Network offers many of the same channels, DirecTV offers a higher quantity of channels. DirecTV also offers better quality channels over Dish Network. In today’s society, people expect the same movie experience in the privacy of their homes as they do at the box office. For this simple reason, quality is a major selling point for both companies. People are buying larger televisions which require the clarity of the picture to be better, so quality is one of the biggest reasons why DirecTV is superior to Dish Network. DirecTV offers more full time HD (High Definition) channels, which offer the viewer a cinema...
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...Bearoin. A researcher observes these consumers’ purchases over two years, 1 and 2. The price of Bearoin changes from year 1 to year 2, as a result of an increased number of sellers in the market. The researcher observes the following prices of the drug, and quantities sold, in year 1 and year 2: The year 1 price of the drug for consumers is P1 = $80. The year 1 quantity consumed at that price is Q1 = 400 1. (5 points) Write down the formula for arc price elasticity of demand in terms of P1, Q1, P2, and Q2. 2. (10 points) What is the arc price elasticity of demand for Beroin? 3. (10 points) Now consider a second, new population of consumers buying the same drug in another location. In this new market: The year 1 price of the drug for consumers is P1 = $80. The year 1 quantity consumed at that price is Q1 = 240 The year 2 price of the drug for consumers is P2 = $20. The year 2 quantity consumed at that price is Q2 = 1000 What is the arc price elasticity of demand for consumers in this second market? 4. (10 points) Now, there is a music festival where both of these populations come together and form one population. They have the same demand for Bearoin at the prices listed above in each market. What is the arc elasticity of demand for this combined population of consumers? 5. (10 points) The researcher now wants to use the arc elasticity computed for this combined population to determine what the quantity sold of the drug would be if she could enact a government...
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...Bearoin. A researcher observes these consumers’ purchases over two years, 1 and 2. The price of Bearoin changes from year 1 to year 2, as a result of an increased number of sellers in the market. The researcher observes the following prices of the drug, and quantities sold, in year 1 and year 2: The year 1 price of the drug for consumers is P1 = $80. The year 1 quantity consumed at that price is Q1 = 400 1. (5 points) Write down the formula for arc price elasticity of demand in terms of P1, Q1, P2, and Q2. 2. (10 points) What is the arc price elasticity of demand for Beroin? 3. (10 points) Now consider a second, new population of consumers buying the same drug in another location. In this new market: The year 1 price of the drug for consumers is P1 = $80. The year 1 quantity consumed at that price is Q1 = 240 The year 2 price of the drug for consumers is P2 = $20. The year 2 quantity consumed at that price is Q2 = 1000 What is the arc price elasticity of demand for consumers in this second market? 4. (10 points) Now, there is a music festival where both of these populations come together and form one population. They have the same demand for Bearoin at the prices listed above in each market. What is the arc elasticity of demand for this combined population of consumers? 5. (10 points) The researcher now wants to use the arc elasticity computed for this combined population to determine what the quantity sold of the drug would be if she could enact a government...
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...The Logistics System: A Key Element of Contraceptive Security Planning A logistics system provides excellent customer service by fulfilling the six “rights”: ensuring that the right goods, in the right quantities, in the right condition, are delivered to the right place, at the right time, for the right cost. Logistics Cycle Over the years, experts have developed a logistics cycle that describes the activities of a logistics system. The logistics cycle comprises the following: • The logistics management information system (LMIS), which is at the heart of the cycle; • Quality monitoring, which is a continuing activity throughout the cycle; and • Policies and adaptability, which constitute the logistics environment. Each activity in the logistics cycle must contribute to excellence in customer service. Logistics management includes several activities that support the six rights. The logistics cycle (JSI/DEVILVER Web site, 2005) emphasizes the interdependence of the various activities (see Figure 1). For example, product selection is based on serving customers. What would happen if, for medical reasons, customers refused to use a particular product? Logistics managers would need to reconsider their earlier decision and order products more acceptable to the customer. The decision would, in turn, affect procurement and storage, which are two other activities in the logistics cycle. Figure 1. The Main Activities in the Logistics Cycle Serving...
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...COST 12 5.0 RECOMMENDATION 13 6.0 CONCLUSION 15 1.0 INTRODUCTION Tan Min Yi who was the general manager of Luotang Power, a coal-fired power plant located in central China. He should make a presentation to the Board of Directors of his parent company, China Hua Tong Power (HT Power). Tan knew that his company had performed well during that year, both plant availability and fuel economy improved over the previous year but it just didn’t show up in the financial report. Hubei Provincial Power Company (HPPC) was the primary customer of Luotang that had made a contract for a minimum annual purchase of total electricity of 3,000,000MWh every year. However, there had been limited opportunity to sell energy above the contractual minimum, either to HPPC or others. If the amount of sell would be reduced, the contract required that Luotang sell amounts in excess of minimum annual purchase at approximately 65% of regular price. Luotang also made a contract with coal supplier, Pingdingshan. The company had been successful at selling excess electricity to the power plant but over the past 12 months, demand has decreased. This happen because by falling revenues were concentrate by the high debt burden that the project carried, with approximately 80 percent of the initial construction cost being finance by debt. In this case of Luatong...
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...TOYOTA PRODUCTION SYSTEM BASIC HANDBOOK TABLE OF CONTENTS Introduction & History of the Toyota Production System ........................ 3 Goals of the Toyota Production System. ................................................. 4 TPS Model Overview............................................................................5-6 Respect for People .................................................................................. 7 Focus Areas of TPS ................................................................................ 8 Eliminating Waste..........................................................................9-10 Quality .........................................................................................11-12 Cost. ................................................................................................. 13 Productivity....................................................................................... 14 Safety & Morale ................................................................................ 15 Jidoka . .............................................................................................16-18 Standardization……………………………………………………………….19 Just in Time ........................................................................................... 20 Pull Production………………………………………………………………..21 Kanban……………………………………………………………………..22-23 Level Production.................................................................................... 24 Takt...
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...TOYOTA PRODUCTION SYSTEM BASIC HANDBOOK TABLE OF CONTENTS Introduction & History of the Toyota Production System ........................ 3 Goals of the Toyota Production System. ................................................. 4 TPS Model Overview............................................................................5-6 Respect for People .................................................................................. 7 Focus Areas of TPS ................................................................................ 8 Eliminating Waste..........................................................................9-10 Quality .........................................................................................11-12 Cost. ................................................................................................. 13 Productivity....................................................................................... 14 Safety & Morale ................................................................................ 15 Jidoka . .............................................................................................16-18 Standardization……………………………………………………………….19 Just in Time ........................................................................................... 20 Pull Production………………………………………………………………..21 Kanban……………………………………………………………………..22-23 Level Production...............................................................................
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...described as the ability and the willingness to buy a specific quantity of a product at a given price (Grant, 2002). The demand curve is downward sloping and varies inversely with price. Price changes cause a movement along the demand curve while changes in the factors that influence demand cause a movement of the curve itself. Supply is described as the ability and willingness to supply a specific quantity of a product at a given price (Grant, 2002). The supply curve is upward sloping and varies directly with price. Price changes cause a movement along the demand curve while changes in the factors that influence supply cause a movement of the curve itself. A dynamic global economic environment with continued innovation leading to new and improved technologies entails ever changing demand and supply situations for a large number of goods and services on offer to consumers presently. This paper examines the changing demand and supply considerations for 10 such products with a synthesis as to whether demand/supply for/of them will increase/decrease in the years to come. Before we proceed, it is important to understand what is meant by demand and supply in economic terms. FACTORS THAT WILL BE AFFECTING the DEMAND FOR CONVENIENCE FOODS IN the NEXT SEVERAL YEARS Demand for convenience foods (like those manufactured by the Peterborough based Perkins Food Company) is expected to rise considerably over the next few years, which will make the demand curve shift...
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...Budgets and pro forma statements were utilized to predict how much cash on hand would be available for capital improvements and production capacity increases by estimating future sales and expenses to estimate the amount of revenue the company would take in in each quarter, the expenses incurred each quarter and the amount of cash left over for use by the company. Estimating cash on hand at the end of each quarter allowed for the decision of increase of production capacity each quarter of the simulation results. Pro Forma statements were utilized to ensure cash on hand was enough to cover future sales office openings and production increases, as well as allow the company to weather unforeseen economic events. Using a conservative approach to predicting sales and revenues allowed the company to accomplish this goal. However, the economic conditions of the simulation did not warrant this conservative approach and a much more aggressive cash management strategy could have been utilized to increase return on investment that was lost due to the amount of cash on hand sitting idle at the end of each quarter. For the first quarter, the pro forma statements showed excess of cash on hand, so the decision was made to deposit a portion of excess cash to be put into a certificate of deposit so it would be generating interest income instead of sitting idle, since the projected revenue from sales and increased costs from marketing would leave ample cash flow for the increase in production...
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...between monopoly and competition ▪ Competition among firms that sell differentiated products ▪ How the outcomes under monopolistic competition and under perfect competition compare ▪ Desirability of outcomes in monopolistically competitive markets ▪ Debate over the effects of advertising ▪ Debate over the role of brand names o Imperfect competition are those types of markets that are between perfect competition and monopoly ▪ Monopolistic competition is one such example. o Characteristics of Monopolistic competition ▪ Many sellers ▪ Products are slightly different • Producers are not price takers which means they each face a downward sloping demand curve ▪ Free entry and exit, therefore, zero economic profit in the long run ▪ Example: Pho, Cereal? o Short Run Equilibrium of Monopolistic Competition ▪ Profit maximization decision is similar to monopolist • Produce the quantity where MR =MC • Price is set on the demand curve • If P > ATC: profit • If P < ATC: loss (potential similar to short run competitive firm) [pic] o Long Run Equilibrium [pic] ▪ Zero economic profit ...
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...2011 Abstract Authority de…nes the formal structure of an organization, and is essential for the allocation of resources inside the …rm. This paper develops a theory of authority in a multiple layer hierarchy, in which the distribution of authority alleviates incentive incompatibilities. To examine the theory, I collect monthly personnel data from about 200 journalists over three years in a Chinese newspaper, and provide evidence on their incentives and performance under two basic organizational forms — centralization and decentralization. Relying on an unexpected organizational reform from decentralizing to centralizing editorial power in some divisions of the newspaper, I …nd three main results: 1) centralization improves the quality of the journalists’performance, in terms of the newspaper’ inters nal assessment and the external measures of news content; 2) centralization reduces the journalists’activities for private gain; 3) centralization decreases the editorial activities conducted by managing editors. These results are in line with the theory: a more centralized hierarchy achieves better control over workers’ opportunistic behaviour, at the cost of depressing middle managers’initiative. Key Words: Authority, Organizational Structure, Incentives, Information, Action Distortion, Decision Bias, Media Bias JEL Classi…cations: D2 J5 L2 M5 Economics Department and Centre for Economic Performance, London School of Economics, Houghton Street, London WC2A 2AE, UK. Email: y...
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...optical media which included CDs, Dvds and video games. The process for creating the disks regardless of the type was the same. Discopress started with mass manufacturing of disks. The preparation and expertise required to setup production of each title was significant and thus expensive compared to the marginal cost of production of each unit. Discopress later on added On Demand manufacturing of the disks, as technological advancement made it economical. This process required little or no setup overhead. The unit cost of the disk was higher because of higher variable costs like the cost of the blank disk. This process created a slightly inferior quality disks as compared to the mass production process. Because of minimal fixed cost, this process was a viable alternative for slow selling titles where slightly inferior quality was acceptable. A side by side comparison of the 2 processes follows –...
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...efficiently ≠ produce health efficiently SLIDE 4 Skewed spending concentrated on the top 5% of the population (spend 50% on health care) Top 1 percent spends 20% of HC expenditures (this is the chronic disease carriers who use most of the medical care resources) Measuring Health.. Cannot cover the entire spectrum (mental and social well-being) SLIDE 5: WHAT IS HEALTH? Measures only covers certain aspects like life expectancy (but it doesn’t take into account the quality of life) The more accurate the definition of health, the more difficult health is to measure. Pg 146: Measures of life status. Human Capital Theory of Health Care: Capital can be used as input to produce other products or goods Human capital was like any other type of capital; it could be invested in through education, training and enhanced benefits that will lead to an improvement in the quality and level of production. The concept of human capital recognizes that not all labor is equal and that the quality of employees can be improved by investing in them. The education, experience and abilities of an employee have an economic value for employers and for the economy as a whole. Health is like capital as well: Like Human Capital -- Better health = enjoy better life = work more = higher productivity = more financial benefits. Education is the same. Other factors that affect the production Health: Age,...
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...climatic regions. India accounts for about 45% (2, 50,000 tons-2002-03) of the global spice exports, though exports constitute only some 8% of the estimated annual production of spices at 3.2 million tons (2002). Over all, spices are grown in some 2.9 million hectares in the country. Spice production in India, as much of the agriculture in the country, is undertaken in millions of tiny holdings and determine the livelihood of large number of the rural population. Spices exports have registered substantial growth during the last one decade. It has increased from 203398 tonnes valued MLN US $ 241million in 1995-96 to 350363 tonnes valued MLN US $ 593 million in 2005-06, registering an annual average growth rate of 9.4% in value terms. During the year 2006-07, the spices export from India has registered an all time high both in terms of quantity and value. In 2006-07 the export of spices from India has been 373,750 tonnes valued MLN US $ 793 million registering an increase of 34% in value over 2005-06. India commands a formidable position in the World Spice Trade with 47% share in Volume and 40% in Value. India's spices export is zooming. Exports of spices and spice products from the country during April-June 2008 have registered an increase of 23 per cent in terms of quantity and 28 per cent in terms of Rupee value. In Dollar terms the increase is 26 per cent. According to figures released by the Spices Board, the cumulative figures for April -June 2008 is estimated at 1, 48,550...
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