I have read a very interesting article about costs of production in the world. And there are some difficulties in the world with costs on products.
So, in last two years oil and other important resources such as gas, colour metall are rising in costs more and more.
And this changes impact upon firm's production costs. Oil and other resources are very important for our world, it's very hard to imagine our world without oil, gas, metall, etc, because most of our technologies move and develop by these important resources.
In case of oil, it's increasing in price and it gives some effects on all types of business,small as well as large. And in many companies with global production such as cars production. Metal prices become really expensive also oil prices become very expensive correspondingly prices on fuel are becoming expensive and all these things affect the distribution costs of all business. Now many people prefer go by buses or by bycycle because it is much cheaper.
Apply economic concepts!
ReplyDeleteI want to see diagrams for oil and cars and bicycles. I want formulae and discussion of cross elasticity....