The following points highlight the top two sources of growth of firms. The sources are: 1. Internal Growth 2. Mergers. Source # 1. Internal Growth: Many firms become large by generating internal growth. Marks and Spencer is an example. It started as a market stall selling clothes and still does this, though it has also diversified into other products. Other [...]
The following points highlight the eight things to determine before finalizing the location of a firm. The determinants are: 1. Personal Preference and Historical Factors 2. Transport Costs 3. The Cost and Skills of the Labour Force 4. The Cost of Renting Land 5. The Nearness of Power Supplies 6. The Nearness of Water Supplies 7. Good Infrastructure 8. The [...]
In this article we will discuss about the total, average and marginal revenue of a firm. (a) Total Revenue: Total revenue is the total sale proceeds or sale-receipts that a firm gets from the sale of its output at a particular price. Tables shows the revenue schedule of a firm. Let us suppose that the price per unit or average [...]