Calculation of Decreasing Return to Scale Assignment - 16

Calculation of Decreasing Return to Scale - Assignment Example Assume that K=5 and L=4, therefore, F (K, L) =K+L ²=5+ (4) ²=21. Supposing that K is increased by one unit and L is reduced by 1 unit, such that the new K=6 and the new L=3. The new output will be; F (K, L) =K+L ²=6+ (3) ²= 15 units. The rate of growth increases upward starting from point M up to a stable state point b where it remains constant and starts declining slowly towards the Right (Jones, pp.165). c).  Ã‚  Ã‚  Ã‚   If A grew at a constant rate, GDP will consequently grow because as one of the input is increased, GDP increases. d). Consumption reduces savings and investment, therefore, if TFP increases economy will grow.     5). a). If investment rates double, GDP per capital would also double because investment has a proportional impact on GDP per capita.   6). a).At steady state, capital stock and depreciation are offset. Dk=0 i = sy = s f (k) Where i=investment, and =depreciation (Jones, pp.175-180) Dk =s* f (k) – dk At steady state=2648billions-8%Ãâ€"2648billion The steady state capital stock for the economy=$2436.16 b). 2648billions-20%Ãâ€"2648billion=$2118.4 c). Dk =s* f (k) – dk   Ã‚  Ã‚  

Service Management Assignment Example | Topics and Well Written Essays - 250 words

Service Management - Assignment Example Such procedures are directly related to employee satisfaction and lead to an increase in the same. High levels of employee satisfaction lead to employee loyalty, and this raises the productivity of individual employees. This is directly reflected on the service that is given to the customers. Customers benefit from a higher external service value and this increases their level of satisfaction. When clients are happy with the quality of services they receive from a company, there is a consequent increase in their loyalty to that company and the services it offers. According to research by Heskett et al (167), an increase in the loyalty of customers by 5% can increase the profit of the company by between 25% and 85%. Maintain the service-profit chain is, therefore, important for any company that expects to have an increase in its profits. These links should be strengthened so that everything within the company operates smoothly and without any disruptions. All this should be reinforced by the management of the particular organization to ensure that all workers contribute towards the same goal. Based on this, successful CEOs are not those who locked themselves in their offices and came up with management strategies. Managers of successful companies are those who spend time with employees and customers and in the process listen to their employees and customers for suggestions on improvements in their organizations’ modus