Saturday, September 22, 2018

ECONOMIC CONCEPTS TO COMPANIES

Bharat Coking Coal Limited :
It is also know as BCCL . Bharat Coking Coal Limited is a government company which is situated in Dhanbad.it is incorporated in 1972 to operate coking coal mine operations in jharia and raniganj
Few economic concepts are applied to this company
1)OLIGOPLOY MARKET:
Bharat Coking Coal Limited is an oligopoly market as there are few no of firms can only enter the market, there is restriction to entry and it is differentiated or undifferentiated products in market
2) ECONOMIES OF SCALE:
Bharat Coking Coal Limited always planned to produce in large amounts as the demand for coal in production of electricity is high and few factories .so as there is increases in the production the average cost for production also reduces
3)PRICE DISCRIMINATION:
In Dhanbad the availability of coal is high so people purchase for a less price as compared to the people from long distances as the cost also increases simultaneously. The company has the chance to change prices from one customer to other
4)LAW OF SUPPLY:
Coal  is non-renewable natural resource as the company BCCL generates upto the availability of the resource if the demand for the coal increases the supply of the coal also increases with the increases in price
5)ECONOMIES OF AGGLOMERATION:
This concept is applied to this company because there are many coal mining companies in jharia ,hazaribag,ramgarh etc. where large amount of coal is mined .so the government planned to locate their office in Jharkhand as it helps to accumulate the information and to share new ,innovative ideas among the firms 

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