1979-12-01 — Page 31

WAH KIU YAT PO

money from banks at o lower rate of interest.

育教保 頁三第張八第日二十月十年未巴展

1980

中學會考試題預習專欄

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•陳勵德R

ECONOMIC (8)

K. K. Wong & L. T. Chan

(Mill & Dale Press Ltd.)

1. Discusa the economies of

large-scale production and explain why some small firms still exist.

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 of

factors of production

The total costs to output increase less than proportionately for a large output than a smaller one. Since large scale production may need more labour

force, a greater

division of labour will

most probably be

employed.

Consequently, the

average output per

man-hour can be

expected to rise and

qualified specialists

can be introduced.

In

addition, larger

firm 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 of 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, å färger firm is able to attain a more efficient use of labour and better management methods,

(c) Marketing economies

It is generally the case that a large firm can buy more cheaply than a small one, for it buys new materials, component parts, etc. in 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

AR

by the wholesaler. far as advertising and promotions are

concerned, a large firm

is able to afford a higher spending on these items thau a small firm.

(d) Economies in finance

Large firms generally are

considered to be safer borrowers by the banks, thus they can borrow

(e) Economies in research

Large firms again

have advantages over

the small, for they can

set up their own

research departments,

have their own

laboratories, and can

employ a large number

of trained research workers. In this way, a large firm is able to study betterments for the company and innovate products for the company's growth.

(f) Economies in welfare

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

Even though large firms can enjoy the advantages through large scale production, the fact that sual firms still survive indicates the following

reasons) -

(a) The size of the

business tends to be small where

(i)

(ii)

the work

involves the provision of direct services,

for instance doctors, accountanta, dentists.

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,

(b) Sometimes, many small retailers can survive because they have been able to give personal attention to the particular requirements, of their own group of customers who are willing to pay a little more for this service.

(c) 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 of the firm should be small.

2. 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 horizontal integration results from the combination of 2 or more firma

of 2 or more firms that sell in the sAME line of business. Since a horizontal integration combines competitors together, it increases the degree of industrial concentration and tend to contribute to a reduction of competition within an industry.

(2) Vertical integration

A vertical Integration results When one of the firms

報日僑華

in the combination

supplies the other

with an important

service of intermediate) product. The

integration of a 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 firms involved are not

direct competitora,

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 to another.

(3) Conglomerate

integration

A conglomerate integration results

when firms that are in distinct, often unrelated, industries combine together. integration of a steel manufacture and a

The

cigarette company is an example. Although a conglomerate integration is less likely to influence competitive conditions than either horizontal or vertical

integration, it can still reduce the scope of competition when the two firms integrated are strong potential competitors or are important customers of each other.

Advantages of Integration

Integration can bring ahout operational efficiency and reduce the cost of production. Thus tlie customers can benefit by paying a lower price as a result of integration. Excessive competition can be eliminated through integration and wastage of 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 for improving quality, standardization and research facilities for products can be realized through integration of firms. Likewise, integration may increase coordination between different stages of praduction and substantial Increase in output can be achieved. Disadvantages of Integration

3

Integration can create many new problems which the oringiual firms are unfamiliar with of difficult to tackle with. Also, since integration can result in operationa 1. efficiency, redundant labour will have to be dismissed and this can pose a serious

·problem especially in countries where vuemployment

Even is already critical. though integration in general can reduce risks and uncertainties for production, the organization Tormed may be too complex and too large to manage. Thus, worse courdinatíon instead of better coordination between various stages of production may arise arise. Combination of firms Likewise ¿can reduce competit competition and increase concentration as well as

Concentration monopoly power,

The

is especially a problem when the industry is very critical to the country concerned. decline of collapse of a big fire in such an industry may put a large number of workers out of job and push the related industries into difficulties. A depression or mass unemployment may thus

六期星

result.

日一月二十年九七九一公年八十六國民華中

On the other hand, monopolistic power can bring harm to the consumers if the large firms decide to charge higher prices in order to realize more profits.

1980

中學會考試題預習專欄

附加數

(A)

明德出版社岑俊彦提供資料

Additional Mathematics (8)

Solutions to Exercise 4

1,

3:2

E

(2,3)

B(7.5)

C (6.-2)

Lot I be (yq, F;) and F he (gr Yo)

AF CB

2+7(3)

Then g

4+21 247

=5

3+5()

y

1

1+5

6+15

2+3

22

Similarly, = 12-0

•*. E(5, 2)

· Slope of EF=—=7

Ans

(0)

21 5

-0

ཏ་ྟ་

Slope of BC =-

7-6

.". LF/BC

Ans.

2.

5.6

R<,K)

Let (h, k)

4y-3x-2=0

-P(4,1)

Since PQ:PR=1:3

PQ:QR=1:2

the co-ordinates of Q

(1+8 112)

But Q lies on the line 43-3x-2=1)

., 4(+)-3(+)-2.0

B

4k+8=34~2~6=0 .*.4k-3h-22=0

the equation of the locus of # is given by ky-7x-22×0.

F

A

Given: AB: 2x+3y=4F

BC: 3-2x=0)

CA: xsy-740

Ans

A

The equation of the line CF through t, the intersection of DC and AC is given by 4x+5~7+k, (y~2x) −0

4,0. Cr: (4−2k, se

(5+k1)y~7×l)

Again BE; 2x+3y+kp{y=2£}={}

1.«. (2-2kg)x+(3+k1}y={} since CFLAB,

(

=-1

2(4=2k, }+3(5+kg }={

27

Since BELAC

-(2-9)

3+k2

(*)

4 (2−2kg)+5(3+k ̧}u}}

... k=23

.*. CF: (4-46)x+

(5+23)x-7=0

{、e. 6x-4y+1=0 .......(1)

(5+2y=0

and BE: (2-4)x+

Solving (1) and (2),

we have

x=-1, y==5

..the orthocentre, I

=(−1, −).

-2x-3y-600

Let the equation of the the circle be

x2+y22gx+2[y+C=0

Since it passes through (7, -3) and (0, 6),

we have

5+3+2/5)8+2(~3}{+C=0

F ̧», 10g-bf«C«-34 ................(1)

and o

+6°42μ(0)+2(6} f«C=0 120+C=-36

......(2) Since its centre (~g, ~f) lies on the line 2x-3y-6=0

·.". 2(-g)-3(-8)−6~0

-2g+3f=6

(1)-(2): 5g-9f=1 (4)+3•(3); g=-19

(3)

(4)

52

==

and C-92 the circle is

22

x2+y2+2(~19)x+

2(32)+92=0

i.e. 3x

3x2+3y2-114x-64y+276=0

Ans.

~Y~mx+ms-t-o

£ can be written as

y-mx-ms-t=0 Since this line touches

2 2 2 the circle x+y=r"

then distance from (0, 0)

to the line = radius

(0)-n(0)+58-t_r

√1+(-) (msit)2

1+m

22

ms-etm+

m+t2

2 한

i.e. (s”-r”)¤ ̈-28tm

2 2

Now, y-k=m(x-7)

t=4. 8-7

2_2=64-82

and x y

.*. r=8

2

2 2

A79.

射

Substitute these values of h, k, r inte (3),

15m+50m+48m@

(3m+4) (5m+12)=0

mor 12

-

Ans

When me, the tangent from (7, 4) is given by y=4(x-7)

f.e. 4x+3y=40-0

Ans.

Int

When m=1, the tangent is

x-4=-12(x-7)

1.5. 12x+5y=104 =0