Advantages Of Cost Curve

INTRODUCTION Economic growth is defined as the increased capacity of an economy to be able to produce goods and services in comparison from one period of time to another. This is figured by the genuine Gross Domestic Product (GDP) and development, and is measured by utilizing genuine terms such as “Balanced Inflation”. These terms help to remove any distorted views on the perceived outcome of inflation on the cost of merchandises produced. Likewise, Economic growth is related to the high expectations in a person’s standard of living. If the standards are high, it wouldn’t be beneficial for the economy as the working class individuals will face a lot of trouble.

Firms finance investment (the purchase of new capital goods) by borrowing money. Therefore, if there is not saving funds for investment will

Triest suggest that as labor becomes scarce and costly relative to capital, producers will try to shift the labor productivity schedule outward through capital deepening or innovation. Accordingly, economists would expect to find a negative relationship between the growth of the labor force and the growth in labor productivity. Cutler et al. (1990) also argue that incentives to innovate are strongest when labor is scarce. Conversely, Gordon states that productivity growth has been flat in recent years.

A firm may be compared to another one which is of a different size, technology and diversification of products. Rations do not consider the effects of inflation on a firm’s performance. For instance, increased sales may be due to increasing the selling price as a result of economical inflationary pressure. Moreover, ratios do not consider the non-quantitative characteristics of the firm such as customer loyalty, technological advancements and the corporate image.

Capital lease equipment recorded as an asset, depreciation, and books. Because is to pay on the loan, payment record for the account of overall loan time limit. Operating lease record for operating expenses, no relevant expenses. In the review, in a capital lease, the equipment has been booked and the corresponding assets, long-term liabilities and operating leases, it is recorded as expenses. Lease equipment advantage, most enterprises, do one of two ways, either through the financing lease or an operating lease.

That is because if all firms offer higher wages, the labour participation rate must increase too. So, even in the case of multiple employers, a minimum wage set reasonably higher that the market wage can increase employment through bigger labour market participation

The cash ratio is the number of times that the company could meet its current obligations to its current cash balances. The higher the reserve ratio, the more likely a company will be able to pay its short-term debt. Shortly before failure, companies often have very low cash reserve ratio, low levels of inventories, receivables and relatively low current high ratios. Therefore, analyze that Bayou is lays on which position (Henderson et al.,

Two types of general increases are frequently given within BUNNI. The most common is the cost of living increase. Indeed to say that time erodes an employee’s buying power because of inflation. A measure of this erosion is provided by the law unit and legal aspect in BUNNI. If inflation outpaces pay increases, the employee’s buying power is reduced.

Also, it refers to the general price level increase because of increasing of consumer which is manifested in consumer price index (CPI). CPI is used by the consuming public to recognize how their purchasing power is getting effected. It aims to compare the cost of purchasing the market basket bought by a typical consumer during a specific period with the cost of purchasing the same market basket during earlier period. (Gwartney, James D.; Stroup, Richard L.; Sobel, Russell S. 1999) Due to real factors, the demand-Pulled Inflation will occurred by issues such as: fall in tax rates, without change in government spending, increase in investments, increase in government spending without change in tax revenue, decrease in savings, increase in exports, and/ or decrease in imports.

And it suggests and agency theory, firms managed by the owner, has the lowest debt ratio, which will tend to gradually increase its development. This process will be followed by the issuance of new shares as well as specialized hiring