Monday 5 December 2011
Monday 28 November 2011
Saturday 26 November 2011
Who, What, Why: How could Reebok sell trainers for $1?
The answer
- High volume with very slim profit margins
- Locally sourced materials and labour
- There are no guarantees of breaking even - a pilot in Bangladesh made losses
- But it's a social venture and the company stands to establish a foothold in a big market
Friday 25 November 2011
Great resources to help with learning the theory on Labour Markets
A PowerPoint that includes basics plus a decent overview of Econ. Rent and Transfer Earnings.
http://www.google.co.uk/url?sa=t&rct=j&q=Key+factors+in+UK+Labour+supply&source=web&cd=9&ved=0CGMQFjAI&url=http%3A%2F%2Fwww.bized.co.uk%2Fsites%2Fbized%2Ffiles%2Fdocs%2Flabmarket1.ppt&ei=K1LPTq22E8Lt8QPJy-39Dw&usg=AFQjCNEoQ1W5Vqq3br3vu5h2BhwA9vgcJQ&sig2=9MvgW84RAlPDC8rZWgB_NA
Supply of Labour
http://tutor2u.net/economics/revision-notes/a2-micro-supply-of-labour.html
http://www.google.co.uk/url?sa=t&rct=j&q=Key+factors+in+UK+Labour+supply&source=web&cd=9&ved=0CGMQFjAI&url=http%3A%2F%2Fwww.bized.co.uk%2Fsites%2Fbized%2Ffiles%2Fdocs%2Flabmarket1.ppt&ei=K1LPTq22E8Lt8QPJy-39Dw&usg=AFQjCNEoQ1W5Vqq3br3vu5h2BhwA9vgcJQ&sig2=9MvgW84RAlPDC8rZWgB_NA
Supply of Labour
http://tutor2u.net/economics/revision-notes/a2-micro-supply-of-labour.html
Saturday 19 November 2011
Wednesday 16 November 2011
Market Failure - Smoking (From Bryn's Blog)
Unit 1: Market failure from smoking
A nice video and article from the BBC
a) What sort of market failure is occuring?
b) To what extent do you think providing information on the dangers of in car smoking would reduce people doing it and reduce the market failure?
c) To what extent do you think banning in car smoking would reduce people doing it and reduce the market failure
A nice video and article from the BBC
a) What sort of market failure is occuring?
b) To what extent do you think providing information on the dangers of in car smoking would reduce people doing it and reduce the market failure?
c) To what extent do you think banning in car smoking would reduce people doing it and reduce the market failure
Friday 22 April 2011
Direct Line and X-Inefficiency
I was the recent victim (well last September) of a shunt in my car, when another driver undercut me going round a dual carriageway roundabout.
At the time, Direct Line said I could arrange a repair with my local garage, which I did for £375 plus VAT. Unfortunately, the other party, having originally accepted liability, gave backword, and so delayed my repair.
Direct Line rang today (Good Friday) to say that in fact I was not at fault mmm….and wanted to arrange my repair. This involves sending my vehicle to Barnsley (transport c.£100) and hiring me a car through Enterprise for the duration (£150+vat) for four days(!), then the cost of a repair at £250 per panel (£500+vat) and new alloy wheel fitted at £159+vat.
To arrange my own repair, they said, in addition to providing the receipt (which is what I would expect); they said I would have to meet their engineer next week at my garage in Lincoln, when I work in Spalding, 46 miles away.
So given the priority to me of personal convenience I’m going to let them sort the lot out!
Don't forget that x-inefficiency occurs where cost deviate from minimum due to uncompetitive behaviour. So how is this X-efficiency? Well the minimum cost to Direct Line for me to arrange the repair conveniently in my own time is £375 plus VAT, the cost for them to do it is c. £1009+VAT, £634 more!
In this case bureaucratic rules, probably to deter moral hazard, effectively increase their costs of operation by 169%!
What are the additional issues? Direct Line are owned by RBS (Royal Bank of Scotland) and RBS are owned by… you guessed it us!
At the time, Direct Line said I could arrange a repair with my local garage, which I did for £375 plus VAT. Unfortunately, the other party, having originally accepted liability, gave backword, and so delayed my repair.
Direct Line rang today (Good Friday) to say that in fact I was not at fault mmm….and wanted to arrange my repair. This involves sending my vehicle to Barnsley (transport c.£100) and hiring me a car through Enterprise for the duration (£150+vat) for four days(!), then the cost of a repair at £250 per panel (£500+vat) and new alloy wheel fitted at £159+vat.
To arrange my own repair, they said, in addition to providing the receipt (which is what I would expect); they said I would have to meet their engineer next week at my garage in Lincoln, when I work in Spalding, 46 miles away.
So given the priority to me of personal convenience I’m going to let them sort the lot out!
Don't forget that x-inefficiency occurs where cost deviate from minimum due to uncompetitive behaviour. So how is this X-efficiency? Well the minimum cost to Direct Line for me to arrange the repair conveniently in my own time is £375 plus VAT, the cost for them to do it is c. £1009+VAT, £634 more!
In this case bureaucratic rules, probably to deter moral hazard, effectively increase their costs of operation by 169%!
What are the additional issues? Direct Line are owned by RBS (Royal Bank of Scotland) and RBS are owned by… you guessed it us!
Saturday 26 February 2011
Adapting Technology for use beyond its original design - dynamic efficiency??
And if this is such a problem, why are major manufacturers opening up their products to different types of uses?
Microsoft is opening up its Kinect motion-sensing device to PC developers and Sony has a similar "aspiration" for its Move controller.
While Microsoft is keen to stress that Kinect "has not been modified or hacked in any way", it wants to "make it easier for the community to explore new ideas".
Academics at Warwick University have already found a more serious use for the Kinect device than just for games.
Microsoft hints at Kinect PC support
"We designed a robot that was going to work in disaster areas such as collapsed buildings that would be unsafe for the emergency services," says mechanical engineer Peter Crook.
"The Kinect system costs around £150 compared to our old system - that only offered us 2D depth perception - which cost around £3,000 so it's a massive reduction in costs."
And with official PC support for Kinect development, this sort of thing is likely to happen more often.
Full article here: http://news.bbc.co.uk/1/hi/programmes/click_online/9406690.stm
Microsoft is opening up its Kinect motion-sensing device to PC developers and Sony has a similar "aspiration" for its Move controller.
While Microsoft is keen to stress that Kinect "has not been modified or hacked in any way", it wants to "make it easier for the community to explore new ideas".
Academics at Warwick University have already found a more serious use for the Kinect device than just for games.
Microsoft hints at Kinect PC support
"We designed a robot that was going to work in disaster areas such as collapsed buildings that would be unsafe for the emergency services," says mechanical engineer Peter Crook.
"The Kinect system costs around £150 compared to our old system - that only offered us 2D depth perception - which cost around £3,000 so it's a massive reduction in costs."
And with official PC support for Kinect development, this sort of thing is likely to happen more often.
Full article here: http://news.bbc.co.uk/1/hi/programmes/click_online/9406690.stm
Wednesday 2 February 2011
This page goes into hibernation until March 10th
As my students move to U2 and U4 now, I don't add to this page until the summer.
I will review our results in March.
I will review our results in March.
Thursday 27 January 2011
Sunday 16 January 2011
Cadbury and and their shift East
Firms decide to locate in areas/countries where they achieve the minimum average cost. The decision by Cadburies to close their Keynsham factory, has most to do with the relative cost of Labour of the UK and Poland. Follow the links for this story on the BBC.
http://www.bbc.co.uk/news/uk-england-bristol-12126550
What is the effect, if any, will this measure have on the S and D curves for labour of this move of production from the UK to Poland?
http://www.bbc.co.uk/news/uk-england-bristol-12126550
What is the effect, if any, will this measure have on the S and D curves for labour of this move of production from the UK to Poland?
Revision Targets - Chapters on Concentratd Markets
Review chapters, look for key areas of analysis, especially appropriate comparisons.
Identify the issues for evaluation. Look at the WAGOLLs.
Identify the issues for evaluation. Look at the WAGOLLs.
Saturday 15 January 2011
Saturday 8 January 2011
Y13 Revision targets weekend of 8th and 9th January
- Review chapters 1 and 2.and watch the videos on this blog. They are referenced on the right of this blog.
- Focus on the points that need to be analyised and evaluated.
- Work out your own contracsting examples, and explain how they apply to the issues in these chapters. Draw and Re-draw the diagrams, focus on drawing the crossin and turning points in appropriate places.
Wednesday 5 January 2011
Tuesday 4 January 2011
The effect of alternative energy
- Who are the other users affected? How are they affected?
- Is this joint supply or competitive supply? Do you know why?
Monday 3 January 2011
Saturday 1 January 2011
The effect of Free (all included prices)
Free power in rented accomodation
http://www.nytimes.com/2010/08/16/nyregion/16chill.html?_r=1&hp=&pagewanted=all
Free parking
http://www.nytimes.com/2010/08/15/business/economy/15view.html?scp=1&sq=economic%20view&st=cse
All you can eat offers
http://www.youtube.com/watch?v=BDPk6OQkpeI
http://news.bbc.co.uk/1/hi/8320043.stm
What is the economics of these deals?
http://www.nytimes.com/2010/08/16/nyregion/16chill.html?_r=1&hp=&pagewanted=all
Free parking
http://www.nytimes.com/2010/08/15/business/economy/15view.html?scp=1&sq=economic%20view&st=cse
All you can eat offers
http://www.youtube.com/watch?v=BDPk6OQkpeI
http://news.bbc.co.uk/1/hi/8320043.stm
What is the economics of these deals?
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