Friday, September 21, 2018

ECONOMICS CONCEPTS APPLIED ON CENTRAL COALFIELD LIMITED

CENTRAL COALFIELD LIMITED : 
                                                           It is also known as CCL. Central Coalfield limited is a                                                                       government company which is situated in JHARKHAND ,                                                               The head of the company is MR GOPAL SHARMA.

1. CONCEPT - 1. OLIGOPOLY MARKET :
                                                  Central Coalfield limited is an oligopoly market , where few                                                              number of the firms are there, entry and exit is restricted and it is                                                    an differentiated and undifferentiated market.

2. CONCEPT -2. ECONOMIES OF AGGLOMERATION : 
                                                  Economies of Agglomeration concept is applied on CCL because                                                      in JHARKAHND there is a place called JHARIA, DHANBAD,                                                        HAZARIBAG, RAMGARH, etc. , where large amount of                                                                  natural is found . So, the government planned to locate their                                                            office in Jharkhand (Hazaribagh and Ramgarh) to take                                                                    advantage of proximity. which also help to accumulate                                                                      information easily help to accumulate information easily , where                                                      work can be accomplished in a speedy way.

3. CONCEPT -3. ECONOMIES OF SCALE :
                                                 CCL always planned to produce coal in large amount because the                                                   demand is very high in a rural places and factories . So this                                                               concept is applied government always focuses on bulk production                                                   because of cost reduction. 

4. CONCEPT -4. LAW OF SUPPLY  :
                                                 CCL is an government company , where coal is generated through                                                   natural resources , it is not a man made product. So, when the                                                        demand increases their is a supply also increases, where price is                                                      also increased by the government.

5. CONCEPT -5. PRICE DISCRIMINATION : 
                                                  The concept is applied because due to place advantage, where                                                          local people hire coal in a less price, where distance people has to                                                    pay more price because many extra cost is added i:e.                                                                          transportation, intermediary etc.












No comments:

Post a Comment