Download e-book for iPad: A Short History of Socialist Economic Thought by Gerd Hardack, Dieter Karras, Ben Fine

By Gerd Hardack, Dieter Karras, Ben Fine

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This is the impact of the law of diminishing returns in action. This phenomenon might be caused by the difficulties in managing an ever-growing labour force at the point that it goes above a certain crucial level. In the article from The Economist that is discussed in this section we see the importance of costs with a real example. This is for the Internet search engine Google where most of its costs are fixed. These result from establishing and maintaining its sophisticated network of super-computers.

In the late 1970s oil companies were able to expand geographically, oil fields were conventional and production was located close to the main consuming centres. Today, most of the reserves are in countries, such as Saudi Arabia or Mexico, that ban foreign investment, in challenging environments such as east Siberia or in politically inhospitable countries such as Iran. Otherwise, there are fields producing non-conventional oil such as Canada’s tar sands. One reason for the long-dated futures price jump is that cost inflation is eating into international oil companies’ extra investment in exploration, according to a recent analysis by the International Monetary Fund.

They thought their children would do well being exposed to a more socially and ethnically diverse educational experience,’ says David James, one of the researchers. ’ So parents inclined to take this route must ask themselves two things: what their risk profile is, and whether they are willing to be activist investors. 2 THE ECONOMICS OF DEMAND AND SUPPLY and children from 124 well-off white middle-class families in three English cities. The parents had made the decision to send their children to poorlyperforming local comprehensives.

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