May 21, 2009 by bennesvig
From Thomas Sowell’s Basic Economics:
There is no such thing as “the” cost of producing a given product or service. Henry Ford proved long ago that the cost of producing an automobile was very different when you produced 100 cars a year than when you produced 100,000 cars per year. It is estimated that the minimum amount of automobile production required to achieve efficient production levels today runs into the hundreds of thousands. What is our most efficient rate of production?
It does not cost as much to deliver 100 cartons of milk to one supermarket as it does to deliver ten cartons of milk to each of ten different neighborhood stores. When building a beer brewery, construction costs are about one-third less per barrel of beer when the brewery’s capacity is 4.5 million barrels per year than when its capacity is 1.5 million barrels. Although A-B spends millions of dollars advertising Budweiser and its other beers, its huge volume of sales means that its advertising costs per barrel of beer are about $2.00 less than that of its competitors, Coors or Miller.
In short, the cost of producing a given product or service varies with the volume being produced. This is what economists call “economies of scale.”
Posted in Uncategorized | Tagged advertising, thomas sowell | Leave a Comment »
April 13, 2009 by bennesvig
With Summer coming sometime in the near future, I’ve decided to put together a collection of my favorite Summer tunes:
Atmosphere – Sunshine
The Hold Steady – Constructive Summer
Mungo Jerry – In The Summertime
Cat Stevens – Here Comes My Baby
Delta Spirit – Ode to Sunshine
Louis Armstrong – That Lucky Old Sun
Matt Costa – Sunshine
Switchfoot – The Shadow Proves the Sunshine
Weezer – Island in the Sun
Louis Armstrong – Sittin’ In the Sun
Tim Armstrong – Into Action
Rancid – Ruby Soho
Blink 182 – Feelin’ This
The Chemical Brothers – Sunshine Underground
Coldplay – Strawberry Swing
Dashboard Confessional – Carry This Picture
Joe Purdy – Wash Away
Judy Garland – Get Happy
If I’m missing any great Summer songs, please add your recommendations in the comments.
Posted in Music | Leave a Comment »
April 6, 2009 by bennesvig
Joining in on the Twitter Trend, here are favorite songs of the past week:
Great Northern – Our Bleeding Hearts
Dan Head – You’re So Cool
The Who – A Quick One While He’s Away
The Chemical Brothers – Asleep From Day
Sigur Ros – Hoppipolla
Delta Spirit – Trashcan
Atmosphere – Not Another Day (acoustic)
The Beta Band – Dry the Rain
Underworld – 8 Ball
Queen – Good Old-Fashioned Lover Boy
Posted in Music | Tagged #musicmonday, atmosphere, delta spirit, Music, queen | 1 Comment »