What did people write fr implications of Unit Labour Costs? I said decrease profits so lower I But productivity may rise because of increase in wages so actually more profit
extent- Cause of increase. if it is occurring because of NI increase then no effect on productivity.
Increase in unit labour costs would lead to an increase in costs of production, which may lead to a fall in output for the cinema harming their profit maximisation capability and it may force them to set price higher to protect their profit margins which may lead to a fall in demand for cinema products (that last party is iffy😡)
For the comment I basically mentioned how wage costs were a small proportion of total costs for a cinema and the majority of their costs were fixed costs such as rent etc, hence an increase in their ULC's may have very little effect on output and their profit maximisation capability may not be harmed.
What did people write fr implications of Unit Labour Costs? I said decrease profits so lower I But productivity may rise because of increase in wages so actually more profit
extent- Cause of increase. if it is occurring because of NI increase then no effect on productivity.
What did u guys put for 1a the calculation and 1c how to calculate unit labour cost ?
My calculator was being all funky rounding all my answers up! So for 1999 I got 60% (even though it was 50-something with a decimal) and 2010 80% (even though it was like 70-something percent with a decimal) but my calculator kept rounding my numbers up. Hope i still get a mark though :/ What do you guys think???
Increase in unit labour costs would lead to an increase in costs of production, which may lead to a fall in output for the cinema harming their profit maximisation capability and it may force them to set price higher to protect their profit margins which may lead to a fall in demand for cinema products (that last party is iffy������)
For the comment I basically mentioned how wage costs were a small proportion of total costs for a cinema and the majority of their costs were fixed costs such as rent etc, hence an increase in their ULC's may have very little effect on output and their profit maximisation capability may not be harmed.
Yeah I mentioned the proportion of total cost + the customers for the corn exchange are loyal so price inelastic in demand.
Yeah I mentioned the proportion of total cost + the customers for the corn exchange are loyal so price inelastic in demand.
Did u suggest any advantages?
Yeah I did, dont know if this is entirely correct though. I said if an increase in unit labour costs is caused by an increase in wages then it may not be entirely bad for the cinema. This is because an increase in wages actually increases the disposable income of the workers who can then spend their wages on leisure like going to the cinema which in turn will increase the demand for the cinemas services, etc. Any thoughts?
Yeah I did, dont know if this is entirely correct though. I said if an increase in unit labour costs is caused by an increase in wages then it may not be entirely bad for the cinema. This is because an increase in wages actually increases the disposable income of the workers who can then spend their wages on leisure like going to the cinema which in turn will increase the demand for the cinemas services, etc. Any thoughts?
after the increase in wages I said that this may motivate workers and therefore their productivity may compensate or exceed the increase in wages so it may actually help customer service and in turn profits.
This was more of a business style answer (PS-I don't study Business)
That was pretty good I thought! I did the essay on monopsony, what about others? How did we find it?
Hi fas i did the eassay on monopsony but i couldnt remember the monopsony diagram so i drew this instead... does it still apply seeing as i explained the whole thing
after the increase in wages I said that this may motivate workers and therefore their productivity may compensate or exceed the increase in wages so it may actually help customer service and in turn profits.
This was more of a business style answer (PS-I don't study Business)
Hahaha, sounds about right though! What essay question did you do?
Increase in unit labour costs would lead to an increase in costs of production, which may lead to a fall in output for the cinema harming their profit maximisation capability and it may force them to set price higher to protect their profit margins which may lead to a fall in demand for cinema products (that last party is iffy������)
For the comment I basically mentioned how wage costs were a small proportion of total costs for a cinema and the majority of their costs were fixed costs such as rent etc, hence an increase in their ULC's may have very little effect on output and their profit maximisation capability may not be harmed.