The following points highlight the top two sources of growth of firms. The sources are: 1. Internal Growth 2. Mergers. Source # 1. Internal Growth: Many firms become large by generating internal growth. Marks and Spencer is an example. It started as a market stall selling clothes and still does this, though it has also diversified into other products. Other [...]
The following points highlight the eight things to determine before finalizing the location of a firm. The determinants are: 1. Personal Preference and Historical Factors 2. Transport Costs 3. The Cost and Skills of the Labour Force 4. The Cost of Renting Land 5. The Nearness of Power Supplies 6. The Nearness of Water Supplies 7. Good Infrastructure 8. The [...]
In this article we will discuss how to derive cost schedules from a production function. Also learn about the relation between long-run average cost and marginal costs. In economics the long run is not some date in the future. The long run simply means that all factors are variable to the firm. Therefore, one of the first decisions to be [...]