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Monique T

When talk isn't cheap | The Globe and Mail - 0 views

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    This article describes the cell phone costs that one small business owner is experiencing. These cell phone costs could be both fixed and variable costs - she still has to pay her basic cell phone bill no matter how many clients she has, so that cost is fixed regardless of output, in that sense, because at a certain rate the costs are constant. However, if she has a larger number of customers, and needs to call to deal with more of these customers, therefore going over her monthly plan limits, than the cost will begin to vary, so in that sense it is a variable cost. Overall, she needs to attempt to reduce this production cost in order to gain a better profit for her business.
Monique T

Malta's power stations cost up to €126m a year in health, environment | The M... - 1 views

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    This article discusses the environmental and human health costs of power plants. These type of costs would be considered negative externalities of production, because they are harmful effects that do not effect the firm producing the power, but rather a third party, society as a whole. When producers are making the power, they value the cost as the private costs to their firms, but as outlined by this article, there are many social costs which they do not consider, and this leads to over-production, which means the market is failing, as the resources are not being allocated efficiently. An interesting aspect is that they are able to put a true "cost" on environmental and health effects, which can be quite hard to determine.
Katie Edwards

New Design to Reduce Solar Manufacturing Costs - 0 views

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    This article highlights the redesign of solar manufacturing so that it is cost-efficient for the company, as well as energy-efficient for the consumers. The lower-cost manufacturing is simpler by a decision to minimize some production costs by combining the design into a "single silicon wafer processing line." Clearly, it's a variable cost, and a positive change for the firm.
Monique T

P&G to lay off 1,600 non-manufacturing employees to cut costs | Economic Times - 1 views

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    This article details how the large company Proctor & Gamble is attempting to cut variable costs by eliminating jobs, which leads to lower labour costs. This action results in a lower cost for their products, leading to more productive efficiency. This competitive behaviour is also partially reflective of perfect competition, where companies must decrease costs in order to increase profits; however the article also focuses a lot on the advertising done by Proctor & Gamble, which is not fitting with the assumptions of the perfect competition model.
Desmond M

Is Junk Food Really Cheaper? - NYTimes.com - 1 views

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    This article demonstrates opportunity cost because it shows that eating healthy food costs less but most people prefer not to because of the inconvenience of cooking it.
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    This is a really neat way of looking at opportunity cost! It not only shows the opportunity cost of specific products, but how we as humans determine what's important, or what's the most important.
Lola Z

Report Shows Production Costs Up - 0 views

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    This article examines how the increase of production cost of cent and nickel affects the business. The total costs has been increasing and making the firm losing money.
Monique T

Home shopping goes high end - Jul. 19, 2011 - 2 views

  • white ones.
    • Lola Z
       
      Value of the white ones is the opportunity cost.
    • Lola Z
       
      Human wants are unlimited. Ladies always want more fancy jewelries. 
    • Lola Z
       
      Human wants are unlimited. Ladies always want more fancy jewelries. 
  • everyone wants to be at the party." 
    • Lola Z
       
      Once again, this shows that human wants are unlimited.
  • ...2 more annotations...
  • "The recession may be the best thing that happened to the home shopping networks because designers needed new outlets to offer more affordable prices," said Jack Plunkett, CEO of Plunkett Research.
  • By selling directly to the consumer, shopping channels eliminate the steep mark-ups taken at boutiques and department stores and offer more competitive pricing, said Plunkett.
    • Lola Z
       
      Opportunity cost for customers is that the convenience of going to shops to see the real goods and try them on.
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    Not only is there an opportunity cost for the designer, but the people spending this money on the jewelry have the opportunity cost for other large items - such as a vacation or new computer!
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    I commented on this article, and now on my screen above it says shared by Monique T... just to clarify, Lola posted the article, not me.
Mirren M

Corn ethanol firm says it cut production cost - 1 views

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    "Poet, which currently produces 1.5 billion gallons a year of ethanol from corn, said its 1-year-old pilot plant has reduced the cost of making ethanol from corncobs to $2.35 a gallon from $4.13 by cutting capital costs and using an improved "cocktail" of enzymes" - (picked from the article) The company also changed their source of fuel in order to produce a bigger amount of ethanol.
Nadiya Safonova

How much does the iPhone actually cost? - 2 views

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    Have you ever wondered if the cost of the iPhone or other electronics actually relflects how much money it takes to produce them...this article explains it :)
Sebastian van Winkel

Higher Production Costs Shift Chinese Manufacturing - 2 views

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    This articles start out by talking about how Chinese support the world with cheap goods. However, prices are expected to go up as Chinese manufacturers run down with higher wages, more expensive raw materials and an growing currency. This article shows the increase of production cost and the effects it will cause, such as: having companies to opt out, or relocating their companies to other countries.
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    For decades, China's factories have supplied the world with cheap goods - from denim jeans to desktop computers. But export prices are expected to go up as Chinese manufacturers are battered by higher wages, more expensive raw materials and an appreciating currency.
Dan Call

Production costs rise for milk - 0 views

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    Production costs have risen for farmers producing milk from their cows, which has resulted in a shortage of milk, but a still constant supply.
Lola Z

District is going green with buses - USATODAY.com - 0 views

    • Lola Z
       
      As the propane buses are more environmentally friendly, government encourages the purchase of these buses by granting tax credits.
  • "You don't have the emission issues, and that was very, very attractive," Latko said.
  • The federal government offers a 50-cent excise tax credit for alternative fuels that include compressed natural gas and propane. The incentive makes the cost of propane about $1.40 a gallon, at a time when gas and diesel often cost over $3.
    • Lola Z
       
      The grant from government helps to lower the prices for gas and propane. So more consumers are attracted to use this kind of fuel, and thus, the complement, propane buses.
  • ...2 more annotations...
  • low cost
    • Lola Z
       
      Due to the subsidy from government
  • Government tax credits have added to the economic feasibility of propane buses
Katrina D

How U.S. TV Wound Up With Fewer Episodes - 0 views

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    This article talks about the effect production costs have had on the number of episodes in a season. In an attempt to be productively efficient as production costs per episodes rise, show producers have simply had to cut down the output of episodes. This makes sense because if we shift the AC curve left, the cost will decrease, but so will the output when AC=MC (productive efficiency).
Adam C

Market failures: We are not paying the full cost of our purchases | savannahnow.com - 0 views

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    A market failure occurs when the transaction between a buyer and seller imposes costs on a third party and these costs are not included in the price paid. The third party impact is called an externality. When the externality is negative, like in this scenario, then we should try to limit the consumption, thus raise the price, however this has evidently not happened.
Lola Z

Singapore's Monetary Policy Aims To Ease Short-term Inflationary Pressures - 0 views

    • Lola Z
       
      supply side policy to improve supply counteracting the rise in production costs.
  • monetary policy should aim to temper, but not fully offset
  • productivity improvements arising from the significant economic restructuring will help to prevent higher costs from fueling strong price increases, the central bank is firmly committed to objective of price stability over the medium term, he told a conference.
Monique T

Greek yogurt on a marathon-like growth spurt | Lake County News-Sun - 1 views

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    This article describes the recent growth in a number of firms producing Greek Yogurt in the United States. As a result of this growth, the firms are experiencing economies of scale and they are all expanding their factories to increase their output. As the article states: "The Chobani plant today bustles with 14 production lines mechanically squirting yogurt into plastic cups that zip down conveyor belts." - this shows a technological improvement that is an economy of scale: due to the increase in size in the firm, it can employ more efficient, lower cost methods of production.
Markus O

Google shares tumble after surge in costs - 1 views

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    Google shares fall as costs surge and revenue falls as a result of lower prices.
Monique T

Competition versus consistency | Global News - 0 views

  • Canadians pay double the market cost for milk
  • To protect those farmers, government started regulating the prices paid to farmers and controlling the amount of milk they could produce.
  • Canadian agriculture is one of the most protected aspects the national economy.
  • ...1 more annotation...
  • protection benefits producers at the expense of consumers
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    A government sponsored agency currently controls the prices for dairy products in Canada. This was implemented because the government wanted to regulate the prices paid to dairy farmers and the amount of milk they could produce, in order to protect the farmers. However, problems have begun to arise because of these price controls, mostly due to the fact that the market price is much higher than it should be (which hurts consumers) and it is costing billions of dollars each year.
Desmond M

Operation Twist: Positive Impact On Banks With Big Mortgage Portfolios - Seeking Alpha - 0 views

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    This article demonstrates opportunity cost by saying that by selling short term treasuries, which will lower their price, and buying long term treasuries, which will raise their price, there will be benefits for banks with mortgages on their balance sheets.
Desmond M

Obama Tax Plan Would Ask More of Millionaires - NYTimes.com - 2 views

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    This article demonstrates opportunity cost because a rise in government revenues may lead to a shortfall in private sector investment.
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