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Summary of the problem of social cost by Ronald H Coase
August 13, 2012 13:56
Coase argued that if we lived in a world without transaction costs, people would bargain with one another to produce the most efficient distribution of resources, regardless of the initial allocation which is superior to allocation through litigation. Coase used the example of a nuisance case named Sturges vs. Bridgman, where a noisy sweet maker and a quiet doctor were neighbours and went to court to see who should have to move. Coase said that regardless of whether the judge ruled that the sweet maker had to stop using his machinery, or that the doctor had to put up with it, they could strike a mutually beneficial bargain about who would have to relocate so that it reaches the same outcome of resource distribution. However, many welfare-maximizing reallocations are often forgone because ...
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Role of inventory control in businesses
August 12, 2012 06:55
Inventory control is the art of controlling the amount of stock held in various forms within the business to meet the demands placed upon the business and is an essential practice in an organization. According to Jessup and Morrison (2006) the usual approach to the control of stock is the control of input to the stress. The stock controller in most circumstances will have little, if any, jurisdiction over output. Stocks have been defined in many terms. According to Megis and Megis (2005) stock is one of the current assets of retail shop or a wholesale business or inventory of merchandise. The sale of this merchandise is the major source of revenue. In developed countries, inventory control has been facilitated trough the introduction of penalties to suppliers who fail to make deliveries o...
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