Box 42 Further reasons for economies of scale the learning curve
Fixed costs and increasing returns to scale are not the only reasons why average costs of production fall as output rises. Another important factor in some industries has been the learning curve, which relates the firm's average cost of production to its cumulative output. An example of the way we might express such economies is that every time a company doubles its output, costs per unit fall by 25 percent. Such reductions in cost may occur due to better organization and scheduling of complex...
Summary of key concepts Jer
1 A tariff is a tax levied on imported goods. For a small country that cannot affect international prices, levying a tariff will reduce its national income or welfare by encouraging too much domestic production and discouraging domestic consumption. While producers' surplus and government tariff revenue rise, the loss in consumers' surplus from the rise in domestic prices is even greater. 2 A quota limits the amount of goods that can be imported. Imposing a quota also drives up the domestic...
Annual Report
Balance of Payments Statistics Yearbook Direction of Trade Statistics Government Finance Statistics Yearbook International Financial Statistics Revenue Statistics of OECD Countries International Trade Statistics Yearbook Monthly Bulletin of Statistics World Bank International Bank for Reconstruction and Development World Trade Organization http www.wto.org 1 World Investment Report ' Trade and Development Report ' Finance and Development quarterly, by the IMF and the World Bank 1 World...
Summary of key concepts
1 Since 1970 international trade in goods and services has grown faster than national income in most industrialized countries. The pattern among developing countries is more mixed, but since 1980 trade has become more important to a larger number of developing countries. 2 Foreign direct investment has grown more rapidly than national income in most industrialized countries since 1980. Other capital flows have grown rapidly, too, due to the liberalization of government restrictions previously...