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fixed cost (DO)<br />A cost to an enterprise which is incurred even when that enterprise's output is zero. These costs occur in the short run. The principal examples of them are equipment COStS and the COStS of FACTORS OF PRODUCTION which a firm has contracted to pay for a minimum period of time, e.g. managerial staff. In the long term, all costs become variable as fixed capital can be changed and contracts revised.<br /><em>See also:</em> average total cost; circulating capital; human capital; quasi-fixed factor; variable cost
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price-offer curve (DO)<br />Another name for the PRICE CONSUMPTION CURVE.<br /> price perception (DO)<br />Awareness of an actual price relative to other prices. When units of a currency are changed, e.g. through DECIMALIZATION or through many price changes in a period of general INFLATION, consumers are often unable to understand what price is being stated.<br /><em>See also:</em> money illusion
Industrial Reorganization Corporation (L5)<br />The UK state-financed financial institution in existence from 1967 to 1971 with the aim of restructuring UK industry. It provided finance to bring about desirable mergers between firms so as to make them more internationally competitive, British Leyland being one of its more famous cases. Also, it invested directly in several high-technology firms. The subsequent Conservative government abolished it because of its belief that government-financed bodies should not be engaged in risky investment activities.<br /><em>See also:</em> National Enterprise Board <br /><em>Reference</em><br />Hague, D.C. and Wilkinson, G.C.G. (1983) The IRC - An Experiment in Industrial Intervention: A History of the Industrial Reorganization Corporation, London: Allen & Unwin.
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boom of the 1830s and 1840s, the third, based on steel, machine tools and motor vehicles, which came to an end in the 1970s and the fourth, which is now taking place, based on electronics and biology. A disruptive feature of the fourth is the use of robots to replace workers in manufacturing, creating unpredictable and undesired employment effects.<br /><em>See also:</em> Kondratieff cycle; take-off <br /><em>Reference</em><br />Deane, P. (1979) The First Industrial Revolution, 2nd edn, Cambridge: Cambridge University Press.<br /> Rostow, WW (1971) The Stages of Economic Growth: A non-communist manifesto, Cambridge: Cambridge University Press.
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