Economics Essay Example | Topics and Well Written Essays - 2000 words - 2

Economics - Essay ExampleFor example a company that has an ice puzzle out machine that usually produces 40 boxes of 1 dry pint of ice cream a day was able to produce as much as 80 boxes of 1 pint of ice cream a day by cutting on down-time due to machine disruption caused by lack of machine maintenance.It could also refer to the application of a special device in a machine in come in to enhance its speed and therefore increase the volume of production. some other way is to maximize the use of manpower by establishing a short and clear chain of direct within the business organization. Therefore, it is possible to avoid the incidence of employing too much unnecessary employee in the crowd.In order to achieve economies of scale, a good management is essential. Basically, it is the managers and supervisors who suggests and/or make critical decisions in order to maximize the daily fixed costs (such as labour costs and over-time pay and electricity costs) of the company. These are als o the same group of people who are responsible in cutting down the depend of rejections in a production line. Minimizing the number of rejections can indirectly increase the companys positivity by cutting down the unnecessary opportunity losses and prevent avoidable expenses on the fracture of the company.Q.2 pardon how changes in the equalizer price and quantity are influenced by the elasticity of demand and supply. Explain the difference between a shortage and a surplus and discuss why either expertness occur.Basically, the market equilibrium price and quantity is the point where the quantity supplied is equal to the quantity demanded. The said equilibrium point changes when there is an imbalance between the demand and supply. For example if the demand for a certain goods is above the supply, the price of goods will automatically go up to a certain point where a clean equilibrium point will be created. Likewise, if the supply