Production And Costs Of Goods Or Services For A Local And International Market

Tags:

• According
• Alexander The Great
• Analysis
• Analyzing Tescos Capital Structures and Costs of
• Area
• Bank
• Budget
• Capital
• Case Study 1 for a
• College
• Company
• Conclusion
• Consumer
• Contract
• Cost
• Costs
• Creation
• Cuban
• Development
• Document
• Economics
• Economy
• Education
• Efficiency
• Elements

Show more

Get document Get an original paper

Production and costs of goods or services for a local and international market

In the following work, relevant concepts will be analyzed to the area of the economy, such as production, a company can maintain a company. This production arises from the combination of several work, material and capital. The assertive factor will be one that can do more with less, in the short term it is very difficult to see this capital investment. In the long term you can see this investment made in capital and labor. The short -term factors are those that are fixed and in the long term are those that are the variables. And in the short term this work will be variable. In the long term all factors are constantly changing. Technical efficiency is one that only uses the essential resources to create a product. On the other hand, economic efficiency seeks to temper prices or match according to production factors. Short -term production has several advantages. 

Next we will tell you. In the short term it is much easier to be able to work with the capital of the company. This can get how to pay new goods that are necessary for the creation of products. Short -term interest rates are lower. If a company has to make a loan to continue its operations, YAM will not be affected, since whose interest you will have to pay will be a low one. In this way its production and growth will not be affected. The company’s assets are at stake as they are part of the contract when making a transaction. This means that if the company does not pay these assets they are what the bank would use to be able to pay for said payment.

If the factors are variable, the same amount of production can be obtained through different combinations of factors. The curves that relate the different combinations of resources and production factors. Both curves increase to the right and decrease to the left. The line that joins these different combinations, for a production level shows the different working capital combinations that are needed to produce goods. The line that is different that is the same cost is called isocoste, is equivalent to the budget restriction of the consumer.

conclusion

Finally, production is the ideal combination of a series of elements in order to create a good service. And as mentioned above, it is taken by the hand with efficiency since this is key to the development of the company both in the short and long term the company seeks to maintain the lowest production costs. In this way the work will not be affected. However, in the short term, the increase in work can be perceived, which makes it a variable.

Reference

• McGuigan, j. R., Moyer, r. C., & Harris, F. H. B. (2014). Managerial Economics: Applications, Strategies and Tactics (13.A ed.). Stamford, CT: Cengage Learning.
• Cobo, f. R., Torres, v., Machado, and. & Fraga, M. (2011). Econometric methods in the analysis of total milk production costs. Cuban Magazine of Agricultural Science. 45 (3).
• Economy. (2008). In m. Parkin, economy (pages. 280-281). Mexico: Pearson Education .
• Economia48.com. (2009). Obtained from the Great Encyclopedia of Economy.
• National University College. (2013). Production and short and long term costs. PDF document. (pp. 2-10).
• Agronomy faculty. (s.F). Development and management of microenterprises in rural areas. Buenos Aires’ University. Recovered from http: // www.agro.UBA.AR/UNPUENTE/IMG/CONTENTS_PDF/MODULE5.PDF