By Steve Adams
CIMA Revision playing cards are the single fabrics written and counseled via CIMA. they supply succinct yet whole insurance of all of the significant issues of the recent CIMA 2005 syllabus. The pocket-sized, spiral-bound layout permits them to be carried round simply, making them valuable assets at any place you're. Diagrams and bulleted lists are used all through to reveal the foremost issues as sincerely and concisely as attainable. This simplifies the syllabus and makes the issues effortless to benefit and have in mind. CIMA Revision playing cards offer: * examination counsel and tricks * A precis of the entire key subject matters of the recent syllabus* visible aids to consolidate studying * examination targeted, pocket sized revision courses summarising the main subject matters of the hot CIMA syllabus * Diagrams and tables all through strengthen key innovations and relief reminiscence retention and remember * simply transportable measurement
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Extra resources for CIMA Revision Cards: Economics for Business
Thus, the price mechanism may lead to over or under production and consumption of these goods and services. This is an example of market failure, where the price mechanism does not produce an efficient allocation of resources. Definitions An external cost is a cost that is borne, not by the producer or consumer, but by society as a whole. An external benefit is a benefit that is not received by the producer or consumer, but by society as a whole. And also Governments may use taxes to offset external costs and subsidies to reflect external benefits.
G. defence. g. street lighting. g. g. health services; there may be significant economies of scale in their production. Thus, the state supplements or replaces the private production of these merit goods. 51 ————————————————————————————————————————— The Market System and the Competitive Process Government and competition policy Competition policy 1 K KK K One aspect of competition policy is mergers and acquisitions. Mergers might produce monopolies, which lead to allocative inefficiency. The important issue is the public interest.
This is also known as a conglomerate merger. Diversification can lead to problems of: diseconomies of scale; lack of knowledge expertise in new product areas. And also Because of problems occurring in conglomerate companies, de-mergers sometimes occur, so that each of the new companies can concentrate on its core business. 35 ————————————————————————————————————————— The Market System and the Competitive Process The growth of firms K K Small firms Most firms are small; they have a high birth rate but also a high death rate.