External economies can arise due to several factors, EXCEPT a. specialized and concentrated support industries in one place make it more efficient b. an industry that is already large at first will tend to remain large even though there are many new competitors c. industrial concentration in one place will facilitate technology sharing d. the most suitable workforce is concentrated in a particular place thereby lowering search and hiring costs

total factor productivity cost • average cost marginal cost supply function incre pricing marginal revenue elasticity rule margin Lerner index . markup agency theory raider specific asset hold-up problem tapered integration impediments to imitation franchising sustained competitive advantage ambiguity strategy culture field experiment history learning curve Gausal REVIEW AND PRACTICE EXERCISES 3.1. DRAM FACTORY. You own and operate a facility located in Taiwan that manufac tures 64-megabit dynamic random-access memory chips (DRAMS) for personal comput ers (PCS). One year ago you acquired the land for this facility for $2 million, and used 83 million of your own money to finance the plant and equipment needed for DRAM manufacturing. Your facility has a maximum capacity of 10 million chips per year. Your cost of funds is 10% per year for either borrowing and investing. You could sell the land, plant, and equipment today for $8 million; you estimate that the land, plant, and equip ment…

Entrepreneurship is unique among factors of production because it

Research and development (R&D) is considered a ________ because Fixed cost; it does not vary with current output Fixed cost; it is related to advertising Variable cost; more R&D leads to more quantity produced Variable cost; more R&D leads to higher profits

Increased competition is good for incentivizing innovation. Explain the arguments for and against this statement.

Output (Concession Stand Items) Number of Workers Employed Per day Price of Labor Per Worker Per Day Total Variable Cost of Labor Total Fixed Costs Per Day Total Cost Per Day Average Price of Concession Stand Items Total Revenue Profit Average Variable Cost Average Fixed Cost Average Total Cost Marginal Cost Marginal Revenue 0 0 $120   $2,000   $8.00               100 2 $120   $2,000   $8.00               400 4 $120   $2,000   $8.00

What are the high costs; social and environmental in the production of two of the following products, one from each group cotton and chicken ?

Explain the nature of the national environment in which an organisation operates and its impact on chosen businesses, includin economic, political and legal factors. Examine the behaviour of selected organisations in their national and international market environments.