1978-12-02 — Page 36

真四第張九第 日三初月一十年午戊腾夏

1979

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Economic 8

CAD

Discuss the economies of large-scale production and explain why some small firms still exist.

use of

Economies of large-scale production can be achieved by the policy manipulations within the firm. Generally speaking, when output increases, the average cost of production tends to fall over normal ranges of -output. The following are some of the main economies of scale enjoyed by large scale production, (a)Economies in the use

factors of production .: The total costs to output increase less than proportionately a large output than a- smaller one. Since large scale production may need more labnur force, è greater" divisioulof labour wili most probably bè, employed, Consequently. the average output pers man-hour can be expected to rise and qualified specialists cur be introduced

In

addition, a larger fira will attract more

efficient labour because it can offer its employees better propects of promotion to higher-paid posts. Greater division of labour also enables a more capitalistic. method of production and the employment nf more specialized machinery.

Large scale „of production is able to use its materials more economically,

for what might be waste to a small firm can often be used by a large firm in the manufacture of

by-products.

(b)Economies of

administration

As far as economies of administration is concerned, due to

increases in division of labour, a larger firm is able to attain a more efficient use of labour and better management methods.

Marketing economies

.... It is generally the case that a large firm can buy more cheaply

than a small one, for it buys nev materials, component parts, etc. în Bulk. Hence it enjoys the quantity discount for large purchases. Similarly a large retailer can buy directly from the producer at a lower

price than that charged by the wholesaler. As far as advertising and promotions are

concerned, a large firm is able to afford a higher spending on these items than a small firo.

(d)Economies in finance

Large firms

generally are

considered to be safer borrowers by the banks, thus they can borrow money from banks at lower rate of interest, (e)Ecovonies in research

Large firms again: have advantages over the small, for they can set up their own research departments, havo their own. laboratories, and can cmploy a large number of trained research. workers. In this way, a large firm is able to study bettermenta for

WAH KIU YAT PO

innovate products for

the company and

the company's growth

(1)Economies in welfare

A large firm is financially able to provide long-rux, extensive welfare. facilities and improve the working conditions for its employees.

Even though large, firns can enjoy the advantages through large scale.. production, the fact that small firus still survive indicates the following reasons:-

(a) The size of the

business tends to be small Where

(1)

the work involves the provision of direct services, for instance doctor accountants, dentists.

(14) the work can be

done by craftsmen e.g. in tailoring. (iii) a personal

service is provided, such as that of the domestic plumber or electrician. (h) Sometimes, many small retailers can survive because they have been able to give personal attention to the particular requirements of their ovn group of customers who are willing to pay a little more for this service. Small firms are just right in supplying enough quantities when there is only a limited demand for a commodity in the market.

(d) In some forms of

production, costs quickly start to rise as production expands, and so the most economical unit is the small firm, or in

other words, the optimum size

firm should ft.

What are the different types of integration? State the advantages and disadvantage of. integration.

There are 3 distinguishable. types of integration:

(1) Horizontal integration A horizoutal integration results from the combination of 2 or more firs that sell in the same line of business. Since a horizontal integration combines competitors together it increases the degre of industrial. concentration and

tend to contribute to a reduction of competition within an industry.

(2) Vertical inte ration A vertical ⠀ integration results when one of the firms in the combination other supplies the with an important service or intermediate product. The integration of paper mill with a magazine is such an example.

This type.. of integration gives a company more control over its distribution and purchasing. Even though the firns

involved are rot

direct competitors,

a vertical integration sometimes results in

a considerable reduction

of competition by providing a way for a firm holding substantial control in one market to spread its control

another

tö

Conglomerate integration

A conglomerate

報日僑華

integration results when

firms that are in

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日二月二十年八七九一层公年七十六國民蒂中育教馑造

and Q(x,y,) such that

AQU

QB:"b

distinct, often

unrelated, industries

combine together,

The

integration of a steel manufacturer and a cigarette company is an example. Although a conglomerate integration is less. likely to influence competitive conditious than either horizontal or vertical

integration, it can still reduce the scope of competition when the two firms integrated are strong potertial:

competitors or are important customers of each other.

advantages Of Integration

Integration can bring about operational efficiency and reduce the cost of production. Thus the customers can benefit by paying a lower price as -a result of integration.

Excessive competition can be eliminated through. integration and wastage. valuable resources can be avoided. Also, when small firms integrate together to form a single large firm, the economies of large-scale production can be obtained. More chance and wider scope improving quality,

standardization and research facilities for products car be realized through integration of firms. Likewise, integration may increase coordination between different stages of production and substantial increase in output can be achieved.

Disadvantages Of Integration.

Integration can create many new problems which the oringinal firms are unfamiliar with or difficult to tackle with. Also, since integration can result in operational efficiency, redundant labour will have to be dismissed and this can pose a serious problem especially in countries where unemployment is already critical. Even though integration in general can reduce risks and uncertainties for production, the ............ organization formed day be too complex and too large to manage, Thùs, vorse coordination instead of better coordination between various stages of production may arise. Combination of firmS – likewise can reduce: competition and increase concentration as well as monopoly pover. Concentration is especially a problem when the industry is very ⠀⠀ critical to the country concerned. The decline or collapse of a big firm in such an industry may put large number of workers out of job and, pugh the related industries into

difficulties." depression or mass, unemployment may thus result. On the other. hand, monopolistic power

can bring harm to the consumers if the large firas decide to charge higher prices in order realize more profits. 明德出版社岑俊彥提供資料

附加數學

Add. Maths(8)

Solutions to Exercise

1. Let P(x,y)such that

量

F(x,y)

B{a_b_,8+b)

AB:

(a+b)+(-b)

1+

....(a+b)h+a(a+b)

B+b

2

(a−b)+~(8+b)

-b}b+a(a+b)

+2ab··

a+b

(a+b)_(a−bƒ

1-

a-b

(a−b)=(a+b)

1-2

+3y=0 BCry-2x=0

the coordinates of÷Q.

is (ke)

But lies on the line

438-3x-2=0

• 4(+)-3(+)-2-0

4k48-3}-24-6=

the equation of the locus of R is given by

Ans

Let the equation of the

rele be

+28x+

Since it Passes through (5,-3) and (0,6),

52+3a+2(5)g+2(-3) £+c=0)} 10g-6f+c==34

end

b-a(a+b) b-a

-2ub-h

a-b

Ans

CA÷4x+5y=7-0

The equation of the line

CF through C, the inter-

section of BC and AV ís

given by

4x+5y−7+k ̧ (y¬2x)=()}

CF÷ (4~2k ̧ )x+(5+k, }y~7=0

Again BE:

BE: 2x+3y+k, (y−2x)=0 (2−2kg)x+(3+kg )y=0

Craan, (~(1-2^1}) (-3)=-1

5+k↑

2(4−2k,)+3(5+k, )=0

Since RELAC,

~(2~2k)

4(2-*k2)+5(3+k2)=0

1.0.

CD:(-6)x + (523)v 7-0

6x-4y+1=0

BE: (2–36)x+(3+33)y=0

(1)

+62+2g(0)+2(6)f+c=0

12f+c=-36

-(2)

(3) -(4)

Since its centre (g,f) lies on the line 2x-3y-6

•*. 2(-8)-3(-1)-6–0

-2g+3f=6" (1)-(2):5g-9f-1 (4)+3X(3) g-19

32

and +92

the required circle is

x2+y2+2(-19)x+2(−32)y+92=0

63y -114x-64y+276

Ans.

the equation of the

taugent be y-ax+c and m±2

2 2

and x+y

x2 + (2x+c)2

tange

Since (1) (2), we (4c)2-4(5)(c2-5)

-(1)

the requeied equations

of the tangents are

y=2x+5 and y=2x-5, Ans,

Let the point of contact be (gk).

This point lies on

k=2(h)=5

-(3)

-(1):

also (=)(2)--)

-5x+4y=0

Solving 1 and 2,we have xx-

-(2).

2k-h

Soloing (5) and (4);

(4)

1.

the orthocentre

II is

(-1).

Ans

Let be (h,k)

Since PQ:PQ-1:3

PQ:QR=1:2

RA,K).

the points of contact

are (-2,1) and (2,-1).

D

Ans.