There are general and particular indicators of the use of fixed assets (Fig.2.2.). Common indicators include return on capital, capital intensity, profitability of funds. To the private – indicators of the use of equipment and production areas. Each indicator characterizes individual aspects of the use of fixed assets. The return on capital shows how much […]
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Theory of the ratio of factors of production
In their theories of absolute and relative advantage, Smith and Ricardo showed how production can be increased if countries specialize in production that has an advantage. They accept that the functioning of the free market itself will lead producers to goods that they can produce with the greatest efficiency, and will force them to abandon […]
Main economic characteristics of the industry
Analysis of the general situation and competition in the industry begins with the study of the main economic characteristics. The term industry refers to a group of companies whose products have similar consumer properties and are intended for the same consumers. The main economic characteristics of the industry: market size; scale of competition (local, regional, […]