Essay: To what extent is transport a contestable Market? A contestable market is a market where there is freedom of entry and exit. This implies there are low (or zero) sunk costs in the industry. A sunk cost is a cost which cannot be recovered on leaving the market (e.g. spending on advertising). Therefore, the …
For manufacturing investment, the real interest rate is important for determining the viability of investment. Lower interest rates make it cheaper to borrow. Therefore lower interest rates tend to encourage business investment. High real interest rates discourage investment. How interest rates affect the efficiency of investment At lower interest rates, the marginal efficiency of capital …
SWOT analysis is a method to analyse the existing position of a firm and how it is likely to perform in the future S- Strengths of firm W- Weakness of firms O – Opportunities T – Threats Example, Waterstones booksellers Strengths Established as premier book retailer in UK Good distribution network Prime retail location in …
There are quite a few different types of business and companies. From a single, self-employed sole-trader to a multi-national public limited company (plc) such as Shell. Main Types of Business Sole Trader Partnership Limited Company Public Limited Company Sole Trader As the name implies, a sole trader is a business owned by a single person. …
Some people or businesses are reluctant to switch banks because they think the process could be time-consuming and risk loosing information. It is easy to stay with the bank you first chose through inertia when but switching your account could help you get a better deal. The Banking Conduct of Business Sourcebook (BCOBS) which replaced …
As the old saying goes there are two certainties in life – death and taxation. So why not combine the two and raise revenue from inherited wealth? I have written on this topic before Why are we reluctant to tax Wealth? But, I would like to make another case for why a ‘death’ tax meets …
Recently, for the first time, Amazon sold as many books as Waterstones. Amazon has been operating for the past 13 years and has succeeded in becoming the countries biggest seller of books. The Managing Director of Waterstones has responded with vigour arguing that Waterstones offers much more than their online rival. He says that those …
The arguments for and against the legalization of cannabis and the taxation of the good by the government. Legalising cannabis and placing a tax on the good has several advantages Advantages of legalising cannabis 1. The Government can raise revenue from the tax. Because demand is likely to be inelastic, the tax revenue could be …