Cost-of-production theory of value

The analysis of cost behaviour is all about learning different trends and behaviour in an enterprise. To control the cost efficiently and effectively managers should understand the Cost behaviour properly. A corporation’s decision making, planning and controlling of operations is based upon the cost behaviour. Variable and fixed costs are two types of cost behaviour. All the changes in a business-like prices, costs and volumes of sales which affect the profit are analysed by CVP (Cost Volume…

bourgeoisie. In term of relation of production, this is about the antagonized relationship between wage labor and capitalist. The wage labors are not commodity and have no ownership, so they have no choice but only sell their labor power to bourgeoisie that is commodified to produce surplus and work for wages to survive. Their labor power is to exchange their means of subsistence. In contrast, capitalists are the ruling class that has the private ownership of means of production and earn profit,…

German philosopher who developed the idea of communism. Communism is Marx’s theory of social organization based on the holding of all property in common, actual ownership being ascribed to the community as a whole or to the state (Communism). With communism, members cannot get goods and services from other people’s work. He wanted to destroy Capitalism. Capitalism is an economic system in which all or most of the means of production and distribution are privately owned and operated in a…

Applied Management Theory We are at a crossroads in the world of business management. At a time of fast changes in the workplace, companies that are not adapting are failing at an increasing faster rate. In the past 50 years, the life expectancy of a typical Fortune 500 company has fallen from 75 to 15 years. Not only that, but employee engagement is also at an all-time low. Global figures show that only 13% of employees can be considered fully engaged, while the number of people that can be…

it describes the increase of money in circulation created by banks (Blanchard, 2006). On the other hand, the Income-Expenditure Multiplier is the ratio of change in aggregate production to an autonomous change in total expenditure (Blanchard, 2006). b) Interest rate and the exchange rate The interest rates are the annual cost of credit or otherwise, debt capital, normally computed as an annual percentage of the principal amount. Exchange rates, on the other hand, refer to the price of one…

begins.” Transaction costs appear whenever there is “friction” at the point of interface. In other words, Transaction Cost Economics focuses on the organization of transactions that occur whenever a good or service is transferred from a provider to a user across a technologically separable interface. When transactions occur within an organization, the transaction costs can include managing and monitoring personnel and procuring inputs and capital equipment. The transaction costs of buying the…

the cartel must set the price lower than the monopoly price, reduce output and let the price rise rapidly. This implies that the cartel raises the present value of the competitive fringe by a greater value than the present value of cartels. This empowers those without power, as in order to keep the price high the cartel must reduce production whereas the unconstrained…

The word Theory is defined as a set of propositions, assumptions or facts that provides a plausible or rational explanation of casual relationships between groups of observed events. In other words it is a fact or principle that is presented as true but not known or proven to be true. (http://www.merriam-webster.com/dictionary/theory) From the Greek word ‘Thoros’ (spectator) the origin of the world stresses that all theories are mental models of the anticipated reality. There are many types of…

Problem and solution in Zimbabwe Introduction Inflation refers to rise or increase in prices and fall in the purchasing of the value of money. A problem tends to affect many countries worldwide. Among the countries that have been affected by this crisis, Zimbabwe is one of them. The problem always plunges many countries into long seasons of instability. It is one of the countries facing the problem of inflation for a longer period. The problem of inflation in Zimbabwe came because of bad…

In the Marxist theory on human nature, Marx observes women is equal with men to create society that “form” as now on. It means Marxism does not place women as a part of society that is “formed” by men, and patriarchal community, in which women is oppressed in workplace and family. The patriarchal society create women as a means of production, and men as the owners and the user. Capitalist is a men who have masculineness 's perspective. Therefore, it cause women as an object in the capitalist…