Economics for Business Assignment | Economics Assignment

Added on - 28 May 2020

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Running head: ECONOMICS FOR BUSINESSEconomies for BusinessName of the StudentName of the UniversityAuthor Note
1ECONOMICS FOR BUSINESSTable of ContentsAnswer 1..........................................................................................................................................2Answer 2..........................................................................................................................................6Answer 3..........................................................................................................................................9References......................................................................................................................................11
2ECONOMICS FOR BUSINESSOne of the major industries in the economy of the United Kingdom, whichhasexpandedsignificantly with time, is the construction industry (Wilcox & Perry, 2014). Of the eminentconstruction companies present in the country, Kier is one thatspecializesin different types ofresidential properties, of all shapes andcaters 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 1The operation and sustainability of any industrywhich existsin any marketin the globalframework, depend on several determining factors and the dynamics in these industries and thecompanies operating within the concerned industries largely depend on the changesinthesecausal factors.The changes in these determining factorsaffect the demand and supply statisticsof the companies, thereby affecting theprofitability and long term sustainability of theindustryitself (Baumol & Blinder, 2015). The profit earned by any company majorly depends on themutual interactions ofthedemand 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.Thechanges 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:
3ECONOMICS FOR BUSINESSChanges affecting the supply of the companya) Technological InnovationsWhen a country experienceshuge technological innovations, the same is also expected toaffect the production process of theindustries present in the country, which includes theconstructionindustry 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 processof the concerned construction companymore 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
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