Advantages And Disadvantages Of Small Scale Production

Advantages And Disadvantages Of Small Scale Production

 Prior to Industrial Revolution, small scale production was prevalent in almost all countries. But later, large, scale production became a prominent feature of Industrial Organization. However small scale production was not completely disintegrated in industrial Organization. Small scale production withstood the competition from large scale production. Several developed countries like America, Japan, France, Germany and Switzerland achieved economic progress due to the adoption of small scale production. Small scale production is quite common. It was not eliminated by the large scale production. At present in several countries small scale and …

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Diseconomies Of Scale : The Limit To The Expansion Of A Firm

Diseconomies Of Scale

A firm cannot enjoy economies of large scale production for ever. It has an ending point like every other things. The expansion of a firm or industry brings several diseconomies of scale after the optimum size is reached. These diseconomies of scale are explained as follows- 1. Financial Diseconomies of Scale: A firm finds it difficult to secure financial facilities after the optimum size. Bank and other financial institutions do not feel interest to finance the firm after diseconomies of scale is reached. 2. Marketing diseconomies of Scale: The expansion …

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Types Of External Economies Of Scale Of Production

external economies of scale

Large scale production has several economies. Professor Marshall classified economies of large scale production into two types, namely internal economies of scale and external economies of scale. Here we are going to discuss the external economies of scale. Economics accrued due to the expansion of industry are described as external economies. These economies of scale arise due to the concentration of industries at a particular place. Generally expansion in the size of firms leads to the expansion of industry and creation of external economies of scale. External Economies of scale …

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Types Of Internal Economies Of Scale Of Production

types of internal economies of scale

Large scale production is the result of industrialization and modern technique of production. Large scale production has several economies. Professor Marshall classified economies of large scale production into two types, namely internal economies of scale and external economies of scale. Here we are going to discuss the internal economies of scale. Internal Economies of Scale Internal economies of scale refer to those economies secured by a firm due to an increase in its size of production. These economies are enjoyed by the concerned firms only. The larger the expansion of …

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15 Roles And Functions Of An Entrepreneur In An Enterprise

roles and functions of an entrepreneur

Production process was very simple in olden days. A single person carried on all the activities relating to the production of commodities and services. But many changes came into being after industrial revolution. Factors of production are owned by different persons. Therefore, one individual is needed to bring co-ordination among different factors of production. He is called the entrepreneur. There are some important roles and functions of an entrepreneur in an enterprise. According to Benham, “Organizer is a person who controls the policy of the firm”. Entrepreneur is a person …

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12 Factors Affecting Capital Formation In Developing Countries

factors affecting capital formation in developing countries

There are some factors affecting capital formation in developing countries. Capital Formation or capital accumulation is essential for the economic development of a country. Capital formation means “net increase in the stock of real capital of a country during a period of time. It is the capital formation that determines the economic development of a country. Advanced countries attained economic growth and stability due to the high capital formation. On the other hand, economic development in developing countries is low because capital formation is very low. There are some Factors …

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Importance Of Capital In Business And Economics

Importance Of Capital In Business Capital plays an important role in the production process. Indeed production process is not possible in the absence of capital. The Importance Of Capital In Business And Economics is explained as follows : 1. Provision of tools and machines : This is the main function of Capital. Capital provides various tools, machines and equipment required in production. Production of goods can be carried on large scale when these implements are provided to the workers. In the absence of capital, producers find it difficult to furnish …

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Capital Definition, Meaning, Characteristics and Types of Capital

 Capital Definition : Capital refers to all man-made goods which are used in the production of goods or services. According to Chapman “capital is that part of a person’s wealth which yields an income and which aids in the production of further wealth“. It facilitates the production of goods and services. It is produced by man with the help of Nature. Meaning: Thus capital is described as “produced means of production”. It is a man-made instrument of production. Machinery, tools, factory buildings, raw materials etc. are examples of capital. The …

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Relationship Between Division Of Labor And Extent Of Market

Division of labor is a process in which the production of a commodity is divided into several stages and skilled workers are employed at each stage. It is an important feature of modern large scale production. It brings several economies to the employers. It increases production, saves time and tools and promotes the skill of the workers. It also uses machinery and latest technology in production. It may be noted that there are several limitations which restrict the introduction of division of labor. For example, there is of no use …

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Advantages And Disadvantages Of Division Of Labor In Economics

Advantages And Disadvantages Of Division Of Labor In Economics

Division of Labor is a process in which the production of a commodity is divided into several stages and at each stage a skilled laborer is employed. It is an important feature of modern large scale production. Industrialization and technological changes led to the adoption of division of labor . Types of Division Of Labor In Economics Division of labor is of three types. They are a) Simple division of labor, b) Complex division of labor c) Territorial division of labor. Simple Division of Labor: This was prevalent in old …

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