Economics Essay Example | Topics and Well Written Essays - 2000 words - 2

Economics - Essay Example For example: a company that has an ice cream machine that usually produces 40 boxes of 1 pint of ice cream a day was able to produce as much as 80 boxes of 1 pint of ice cream a day by cutting on ‘down-time’ due to machine breakdown caused by lack of machine maintenance. It could also refer to the application of a special device in a machine in order to enhance its speed and therefore increase the volume of production. Another way is to maximize the use of manpower by establishing a short and clear chain of command within the business organization. Therefore, it is possible to avoid the incidence of employing too much unnecessary employee in the crowd. In order to achieve economies of scale, a good management is essential. Basically, it is the managers and supervisors who suggests and/or make critical decisions in order to maximize the daily fixed costs (such as labour costs and over-time pay and electricity costs) of the company. These are also the same group of people who are responsible in cutting down the number of ‘rejections’ in a production line. Minimizing the number of ‘rejections’ can indirectly increase the company’s profitability by ‘cutting down the unnecessary opportunity losses’ and ‘prevent avoidable expenses’ on the part of the company. Q.2 Explain how changes in the equilibrium price and quantity are influenced by the elasticity of demand and supply. Explain the difference between a shortage and a surplus and discuss why either might occur. Basically, the market equilibrium price and quantity is the point where the quantity supplied is equal to the quantity demanded. The said equilibrium point changes when there is an imbalance between the demand and supply. For example: if the demand for a certain goods is above the supply, the price of goods will automatically go up to a certain point where a new equilibrium point will be created. Likewise, if the supply

Food, Inc Essay Example | Topics and Well Written Essays - 500 words

Food, Inc - Essay Example coli is the corn that the cows are fed. It is quite cheap and dangerous for health. The content of E. coli in the cow’s guts increases when they feed on the corns. In order to regulate the effect of increased E. coli level, the meat packers often tend to cleanse the meat by treating it with ammonia so that it becomes suitable for human consumption. Food borne illnesses resulting from the consumption of contaminated food are increasingly putting millions of Americans in hospitals every year. The number of Americans that are admitted into hospitals every year is 325,000 approximately and those who die because of the diseases caused by contaminated food consumption every year are about 5000 (The Center for Ecoliteracy 39). The toddler Kevin in Food, Inc. who is only two years old becomes sick because of Escherichia E. coli. Escherichia E. coli is a bacterial group which is found in the intestines of many birds, animals and also humans. Usually, many E. coli benefit us by decompos ing the food that we in-take and facilitate its digestion, though serious infections may be caused by some strains that may in turn, cause bloody diarrhea, cramps in the stomach, failure of kidney and sometimes, it may result into the death of the affected person. People may acquire the bacteria of E.