Who I am
I am 21 years old Durham student originally from Prague. I am very passionate about the subjects I am studying and I like to do much more than just the necessary coursework - I am involved with many societies and I frequently attend various talks and debates. I am very energetic and I like to get involved, and among other things I am taking over as the president of Durham PPE Society in 2015/16.
I have two years of experience with official tutoring and many more unofficially thanks to my younger sister, and from the feedback it seems that I have always managed to explain things clearly and make people understand the subject. I like to use my own explanations rather than repeating textbook definitions, making things easier to understand and remember. I believe that any subject can be enjoyable of presented in approachable and fun way.
In terms of subjects I specialise in, I do in addition to philosophy, politics and economics (which I currently study) also maths, music and history. I have done A-levels in all of these subjects with top results and I still do like them a lot (and I need maths for econ, history for politics and music, well, that's just my hobby). And as a bonus I can add some tremendously useful Czech language phrases.
|Economics||A Level||£20 /hr|
|Politics||A Level||£20 /hr|
|Economics and Social Sciences||A-Level||1(A*)|
Economies of scale and scope
The concept of economies of scale were introduced by Adam Smith as a part of his famous works on division of labour. The main idea behind it is that efficiency of production changes as the size of production varies. Usually, as company grows, it experiences increased efficiency of production to a point, where disadvantages of growing bigger exceed economies of scale. In that case, diseconomies of scale happen. To provide an example, when bakery owner decides to employ more people in his bakery and increase sales in his shop, he will most likely experience economies of scale, as he will still be paying the same rent and would not need any major investments in additional equipment. If he would like to grow further though and set up a whole chain of his bakeries, he will need to not only fully equip all his new shops, but also create a managerial structure, as he would not be able to handle it all himself now. That might lead to decreasing efficiency and therefore diseconomies of scale.
Most common reasons for economies of scale are better division of labour, more efficient trading and sales (buying raw resources is cheaper in greater volumes, global brands are better known compared to local ones etc.) technology becomes relatively cheaper (big companies can afford their own labs). On the other hand, most common diseconomies of scale are managerial costs, bureaucracy, inflexibility, slow response time, principal-agent problem (in big companies, manager and owner are usually two different people/groups of people, and their interest might not always be the same).
Along with economies of scale goes economies of scope. These are not based on size, but on the breadth of the products the company produces. Economies of scope can only be positive and occur, when synergies between production of different goods by one company appears. Example can be car producer which also produces buses. The firm has already developed its engines technology, which can be after some modifications also used for buses, so the company is producing them cheaper than if it was focused solely on buses.see more