Fixed Costs

EXECUTIVE SUMMARY This Paper is about how railway freight can best be organized to contribute to economic development. Nearly all the freight that railways carry, could be carried by one or more other modes of transport. But railways have a particular role to ...

RESUME Les goulots d'étranglement ou manque de capacité évoquent la plupart du temps des contraintes pesant sur l'entreprise et limitant la production en quantité maximale. En effet, pour choisir entre plusieurs produits sous contrainte de capacité, les décideurs doivent privilégier le produit pour lequel la marge par unité de facteur rare est maximale. Cette étude met en relief l'incidence de l'utilisation des outils de la méthode du coût variable (MCV) et celle du coût variable évoluée (MCS) pour mesurer la contribution du produit le plus rentable quant à l'utilisation des facteurs rares. Illustrée à partir de nombreux cas de simulation, cette vision inédite reflète une nouvelle méthodologie d'identification des priorités de fabrication facilitant par la suite à l'entreprise la prise de décisions à l'égard de sa gestion de production.

This paper provides necessary and sufficient conditions for the existence of a pure strategy Bertrand equilibrium in a model of price competition with fixed costs. It unveils an interesting and unexplored relationship between Bertrand competition and natural monopoly. That relationship points out that the non-subadditivity of the cost function at the output level corresponding to the oligopoly break-even price, denoted

Much attention has recently been given to whether market reforms reduce or increase inequality. Inequality often reflects unequal access to productive opportunities and recent evidence has highlighted the presence of onerous barriers to entry, especially in developing countries. This paper focuses on the relationships between inequality and finance. In principle, a better financial system can help overcome barriers, and thereby

Today, Brazil has the second longest highway network under private concessions in the world. This paper analyzes Brazil's experience under the two first phases of the federal road concession program, and highlights some of the program's strengths and areas for further development. Despite the unfolding world financial and economic crisis, the potential for further private participation in the sector appears very good. This paper essentially argues that it may be time for Brazil to revamp its current models for private participation in the sector, which may soon reach their limit in terms of being able to meet efficiently the needs of a growing economy. In summary, Brazil could: 1) diversify its toll road model to allow for more innovative public-private partnership structures; 2) update its toll regulatory and contractual framework to overcome some of the design problems that have led to relatively inefficient tolling; 3) consolidate the institutional framework for road conc...

The diagnostic trade integration study (DTIS) update identifies the trade related constraints holding back Malawi from diversifying and deepening its production base, and increasing trade. The DTIS update identifies and quantifies specific trade costs that determine the availability and price of inputs and the ability of producers to get their products to regional and international markets. The report focuses on tariff policies, regulatory issues impacting on trade, trade facilitation and logistics, and policies affecting agricultural trade and trade in services. Recognizing that the (enhanced) integrated framework and the DTIS (including the 2003 DTIS for Malawi) have not been effective in addressing many of the broader issues requiring large-scale physical investments in most countries, this DTIS update focuses on specific trade related policy and regulatory issues within the mandate and policy space of the ministry of trade and the national implementation unit or similar implemen...

As microfinance matures, increasing numbers of microfinance institutions (MFIs) are offering multiple products to their customers. Much of this product proliferation derives from two related trends: a keen interest in making microfinance services more responsive to the needs of the poor and increased competition in certain key markets. At the same time, however, the costs of microfinance remain high, and relatively few MFIs, conduct detailed operational cost analyses to understand the structure, and causes of their costs, whether at the branch, product, or client level. This type of information can help MFI managers streamline processes and reduce costs. This tool outlines two methods for determining the administrative cost structure of individual microfinance products. Once product costs are determined, the tool suggests methods for understanding how, and why costs are incurred for a specific product, and, how the product contributes (or not) to the overall financial viability of t...

The aim of this study was to determine the production costs of 1249 litters weaned (matingweaning) on small scale pig farms in different regions of highlands in Mexico during one year (July 2010 to June 2011). Three strata were defined according to the number of sows: Stratum I, 5-10 (n = 8) Stratum II 11-49 (n = 10), Stratum III 50-100 (n = 4). Net income was positive for all strata. Stratum I with $ 206 (unpaid labor) and $ 12 (with paid labor), Stratum II with $ 152, and Stratum III with $ 165 Mexican pesos per piglet sold (14.49, 0.84, 10.69 y 11.60 US dollar with a rate of peso-dollar of 1:0.0703), the relationship B/C were: Stratum I = 1.53% (unpaid labor) and 1.04% (with paid labor), Stratum II with 1.35% and Stratum III with 1.39%.