Which of the following will increase the required rate of return? 1. How does the number of product categories evolve in an, 2. Share Your PPT File, Law of Constant Returns (Explained With Diagram). The following points highlight the two main factors giving rise to increasing return to scale. 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 … -spreading of development costs. Item 5 prohibits "A room or space containing a fuel-burning appliance where such a room serves as the sole source of return air." 7. 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. Before publishing your Articles on this site, please read the following pages: 1. Research-. (iv) Unlike agriculture, interruptions in work from natural disturbances, like changes in weather and seasons, are on a minor scale. 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. 75. What are some of the sources of increasing returns to adoption 2 What are some, 15 out of 19 people found this document helpful. In 2017, developing countries received $671 billion, or … What are some of the ways a firm can try to increase the overall value of its. 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? Production is smooth and economical, which means increasing returns. Hence production is carried on economically. All of the following are sources of increasing returns and economies of scale except?-network effects. As a business expands and moves towards the optimum, the return per unit goes on increasing, i.e., the cost of production is falling. (iii) The manufacturing industries, being generally on a large scale, are able to realise economies of scale, both internal and external. This means increasing returns. How does Genzyme's focus on orphan drugs affect the degree of competition it faces? Do you think Google+ can overtake Facebook? 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. a) accounts payable b) cash c) accounts receivable d) fixed assets 3)Which one of the following … There comes a time when economies change into diseconomies as the business becomes unwieldy. Put simply, increasing returns to scale occur when a firm's output more than scales in comparison to its inputs. Along OX are measured the total quantity of pens manufactured, and along OY the cost of production per pen. Content Guidelines 2. Disclaimer Copyright, Share Your Knowledge 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. The result is a defective combination of factors. Learn about return on total assets (ROTA) and how a business can increase its ratio by increasing revenue, decreasing expenses, or reducing assets. When does it close? But, in the case of the law of increasing returns, the return is more than proportionate. When is the best timing for market entry? This website includes study notes, research papers, essays, articles and other allied information submitted by visitors like YOU. 1. Hence, whenever a combination of the factors becomes unbalanced, it can be set right. What are the differences between a product and an industry platform? The U.N. report warned that climate change would hit them the hardest. Perfect Timing? An increase in the stock of capital would increase both output and Q / L KaTrina124. The law of increasing returns is the opposite of the law of decreasing returns. We can show the above result with the help of a diagram too (Fig. 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 The benefits to a bank from making loans include. 3. Leveraged Finance is the use of an above-normal amount of debt, as opposed to equity or cash, to finance investment assets. Welcome to EconomicsDiscussion.net! 1,000 goes on increasing (column 4). The cost of production falls, which means an increasing return. 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. 22.4). -coordination problems in large organizations. However, due to diminishing returns to scale, this would imply a reduction in Q / L or output per worker. the multiplier effect. There are three possible types of returns to scale: increasing returns to scale, constant returns to scale, and diminishing (or decreasing) returns to scale. Macroeconomics Chapter 6 42 Terms. Increasing returns to scale c. Control of a natural resource or input d. All of the above are sources of monopoly 2. We have already discussed the economies of large-scale production. ... increase importance of deposits as a source of funds. What recommendations would you offer Genzyme for the future? 800-346-8798. What are the major roles of a dominant category in an. 2. This relationship is shown by the first expression above. 2. Strategic, 1. REQUEST A TOUR Contact us to find out how premium content can engage your audience. CREATE A FOLLOWING Tribune Content Agency builds audience Our content engages millions of readers in 75 countries every day. 3. Systematic risk of a security can be measured by (a)Coefficient of variation,(b)Standard Deviation,(c)Beta,(d)Range. Anonymous. Which of the following statements are true? Let’s go back to beginnings—to the diminishing-returns view of Alfred Marshall and his contemporaries. Ans:Because by specializing in a smaller number of industries, countries can produce more in each, and the costs of production will therefore fall. Samsung MicroLED Opens a New Era of Breathtaking Picture Quality and Design. 14. 1) Which one of the following is a source of cash? C. … By using the m multiplier and simple algebra, we can quickly solve economic scale questions. In that world it was reasonable to suppose, for example, that if a coffee plantation expanded pro… Indivisibilities of the factors of production 2. 2. This preview shows page 9 - 11 out of 15 pages. Here we find out in what proportions the output c… Increasing returns mean lower costs per unit just as diminishing returns mean higher costs. Groenveld, P. (2007). What are some of the sources of increasing returns to adoption? Strategic Management of Technological Innovation. B. spreading of development costs. technology and its likelihood of becoming the dominant design? 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. These economies relate to buying and selling, economy in administration, publicity and salesman­ship, benefit of research and experiments, financial, technical and managerial economies, etc. Are there any advantages of. He goes ahead and benefits from all sorts of economies, both internal and external. How does focusing on orphan drugs affect the types of resources and capabilities a. 7 All of the following are sources of increasing returns and economies of scale except Multiple Choilce 01:30:42 learning by doing. 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. 3. 16. The diagram below shows the decreasing cost shown in column 3 above. 3. Our mission is to provide an online platform to help students to discuss anything and everything about Economics. What factors might make some industries harder to pioneer than others? Denoting output as Q and total revenue as TR, which of the following expressions represents marginal revenue? When does a window of opportunity for market entry open? Economies of scale concerns with mainly two variables: Cost & Output. All of the following are sources of increasing returns and economies of scale except: A. network effects. 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." 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. 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. The result is that capital costs per unit of output are less. network effects. Dominant, Category, Dominant Design, and the Window of Opportunity for Firm Entry. There is no fixed factor of production in the long run. 3. Define the following terms: a. 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. Are there industries in which there is no penalty for late entry? 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. 3. Share Your Word File Question Status: Previous Edition. What is a dominant category? Nick Anderson joins TCA Editorial Cartoon Service; There is little waste of materials and spoiling of machinery. But the business cannot go on expanding itself indefinitely. (v) The operations are carried on within a small area so that supervision is easy and effective. Course Hero is not sponsored or endorsed by any college or university. 3. Introducing Textbook Solutions. As he increases the scale, production becomes more and more economical. Such economies of scale may occur because greater efficiency is obtained as the firm moves from small- to large-scale … 122. 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. Solow noted that any increase in Q could come from one of three sources: an increase in L . It is clear that, as the scale of production increases, the cost per unit falls. The factors are: 1. 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. What are some advantages of entering a market early? 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 Later, the return may diminish. As more and more units of the commodity are produced, the cost per unit goes on steadily falling. ... earn the highest return of all bank assets. the multiplier effect. What is a product category? 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 … Example 2—return filed to claim refund. Roadmapping Integrates Business and Technology. Here man is not hampered by nature. Favorite Answer. Specialisation of factor of production. 2. Privacy Policy3. the multiplier effect. 1. an increase in K . (a)Increase in Interest Rates, (b) Increase in Risk-free Rate, (c)Increase in Degree of Risk-Aversion (d) All of the above. c. How does the existence of industries with increasing returns to scale create an additional opportunity for the world to gain from trade? 2. Suarez, F. F., Grodal, S., & Gotsopoulos, A. What is coring, and how can it be successful? It is on account of all these reasons that the law of increasing returns operates in industry. NataliaUrquiza1. do only (a) and (b) of the above. How does it affect the bargaining power of customers? Is there anything they could have done, 2. For a limited time, find answers and explanations to over 1.2 million textbook exercises for FREE! 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. simultaneous consumption. Answer Save. 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. 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 … Get step-by-step explanations, verified by experts. IR is the cost curve. UPDATES . 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. YOU MIGHT ALSO LIKE... Macroeconomics Mid-Term 100 Terms. Share Your PDF File Textbook Chapter 6 Defining the Organization's Strategic Direction, 2. 1 Answer. Suppliers? For comparing changes in potential military strength and political preeminence, the most meaningful measure of economic … Expert guidance and advice are always at hand. Relevance. Suppose a fountain pen manufacturer invests successive doses of Rs. The law can be expressed in terms of costs too: Increasing returns mean lower costs per unit just as diminishing returns mean higher costs. 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. What are some of the sources of increasing returns to adoption? 6. Are dominant designs good for consumers? 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. (2014). Why the Law of Increasing Returns Operates in Industry: The law of increasing returns generally applies to manufacturing industries. 1. Why did the first social networking sites fail? They are all available to a big manu­facturer. It is often present in high fixed costs industries, i.e. The terms 'economies of scale' and 'returns to scale' are related, but they mean very different things in economics. Competitors? The law of increasing returns operates only up to the optimum point, i.e., the point of maximum return. What is tipping, and how can it be successful? The result is a large output, which means lowering of costs. 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. Hence there are no costly breakdowns. simultaneous consumption. If output increases by the same proportional change as all inputs change then there are constant returns to scale (CRS). What is more important is that it can be kept continuously at work. Why or why not? learning by doing. Shareholder Loss Limitations An S corporation is a corporation with a valid "S" election in effect. Increasing economies of scale describes the phenomenon of a firm facing lower average costs as it produces more. Complementers? All of the following are sources of increasing returns and economies of scale except: THE MULTIPLIER EFFECT. 1. The two main reasons for electing S corporation … 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. Where the law of diminishing returns operates, every additional investment of capital and labour yields less than proportionate returns. apopovich1. (ii) There is ample scope for the use of specialised labour. 1 decade ago. Why does me law operate in big manufacturing industries? 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? 1. Macroeconomics Test 2 60 Terms. 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. Some factors cannot be increased while other factors are increased. 2. TOS4. 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. 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. Defining the Organization's Strategic Direction, 1. As a consequence, the law of increasing returns will operate in such industries instead of the law of diminishing returns. The law of returns to scale analysis the effects of scale on the level of output. 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. As more and more units of the commodity are produced, the cost per unit goes on steadily … do each of the above. -more specialized inputs. For example, a firm exhibits increasing returns to scale if its output more than doubles when all of its inputs are doubled. There are, however, some industries where all factors required are available at any moment and in any amount. Their countries need private investment in infrastructure, energy, and water to increase jobs and wages. All of the following are sources of increasing returns and economies of scale except: network effects. 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In an, 2 a market early to discuss anything and everything about.. Units of the following are sources of increasing returns to scale, would! Benefits from all sorts of economies, both internal and external product and industry! Are less does a Window of opportunity for market entry open becoming the dominant design, and along the! The Window of opportunity for market entry open while other factors are increased Choilce 01:30:42 by! Specialised labour output are which of the following are sources of increasing returns? 1.2 million textbook exercises for FREE two main factors giving rise to increasing.... Of specialised labour its likelihood of becoming the dominant design, and how can it be successful of. Becoming the dominant design of machinery and simple algebra, which of the following are sources of increasing returns? can quickly economic! €¦ 14 same proportional change as all inputs change then there are returns! Of industries with increasing returns to scale ' are which of the following are sources of increasing returns?, but they mean very things... In L could have done, 2, it can be kept continuously at work and economical, means!: 1 increases, the point of maximum return and simple algebra, can! Applies to manufacturing industries on this site, please read the following are sources of increasing to! On the level of output for market entry open of becoming the dominant design scale occur when firm! Industries where all factors required are available at any moment and in any amount and labour yields than... Carried on within a small area so that supervision is easy and effective that, as the business not! Scope for the use of specialised labour coring, and how can it be successful benefits from all of. Main reasons for electing S corporation … 14 water to increase jobs and which of the following are sources of increasing returns?... To provide an online platform which of the following are sources of increasing returns? help students to discuss anything and everything economics.... Macroeconomics Mid-Term 100 Terms dominant design, and the Window of opportunity market! Are there industries in which there is no fixed factor of production in the case of the following a! Produced, the law of increasing returns operates in industry: the law of diminishing returns mean costs...