Economics for Business Assignment | Economics Assignment

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Added on 2020-05-28

Economics for Business Assignment | Economics Assignment

Added on 2020-05-28

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Running head: ECONOMICS FOR BUSINESS Economies for BusinessName of the StudentName of the UniversityAuthor Note

Economics for Business Assignment | Economics Assignment_1

1ECONOMICS FOR BUSINESS Table of ContentsAnswer 1..........................................................................................................................................2Answer 2..........................................................................................................................................6Answer 3..........................................................................................................................................9References......................................................................................................................................11

Economics for Business Assignment | Economics Assignment_2

2ECONOMICS FOR BUSINESS One of the major industries in the economy of the United Kingdom, which has expandedsignificantly with time, is the construction industry (Wilcox & Perry, 2014). Of the eminentconstruction companies present in the country, Kier is one that specializes in different types ofresidential properties, of all shapes and caters to the clients having different affordability.Established in 1928, by Olaf Kier, the company has been successfully operating in the country(Kier.co.uk, 2018). Answer 1 The operation and sustainability of any industry which exists in any market in the globalframework, depend on several determining factors and the dynamics in these industries and thecompanies operating within the concerned industries largely depend on the changes in thesecausal factors. The changes in these determining factors affect the demand and supply statisticsof the companies, thereby affecting the profitability and long term sustainability of the industryitself (Baumol & Blinder, 2015). The profit earned by any company majorly depends on themutual interactions of the demand and supply forces which are in turn influenced by differentcausal factors. The factors can be both endogenous (Determined within the system itself) as wellas exogenous ones (Determined from outside the system) (Nicholson & Snyder, 2014). This is also applicable in the context of the concerned construction company, the KierGroup, whose supply is subjected to change provided there are changes in the determiningfactors. The changes can be positive as well as negative, depending upon the dynamics in thedetermining factors, which are discussed in the following section, with the help of demand andsupply curves:

Economics for Business Assignment | Economics Assignment_3

3ECONOMICS FOR BUSINESS Changes affecting the supply of the company a) Technological InnovationsWhen a country experiences huge technological innovations, the same is also expected toaffect the production process of the industries present in the country, which includes theconstruction industry too. In general, with technological progress in an economy, the productionprocesses become more efficient as well as cost effective. This in turn, reduces the cost ofproduction and increases the supply of the same (Ball, 2014). Keeping this in consideration, theincreasing technological progress in the overall scenario of the country is expected to contributein making construction process of the concerned construction company more cost efficient,thereby increasing the supply of the same, which can be shown with the help of the followingdiagram: Figure 1: Increase in supply due to technological progress

Economics for Business Assignment | Economics Assignment_4

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