LAND UTILIZATION Land is a scarce resource, whose supply is fixed for all practical purposes. At the same time, the demand for land for various competing purposes is continuously increasing with the increase in human population and economic growth.Land use pattern at any given time is determined by several factors including size of human and livestock population, the demand pattern, the technology in use, the cultural traditions, the location and capability of land, institutional factors like ownership pattern and rights scale regulation. Major Types of Land Utilization in India : As in all other countries, land in India is put to various uses. The utilization of land depends upon physical factors like topography, soil and climate as well as upon human factors such as the density of population, duration of occupation of the area,land tenure and technical levels of the people.There are spatial and temporal difference in land utilization due to the continued interplay of phys...
Internal and external Diseconomies
The economies obtained by a firm or an industry are ultimately limited.A point comes where some factors start operation in the opposite direction and the cost of production start rising .These factors are called as internal and external Diseconomies.
Internal Diseconomies
These are those factors which raise the cost of production bid a firm as its scale of production is increased beyond a particular point.
These include following given factors :
a) Technical difficulties - A main reason for internal Diseconomies is technical difficulties of operating large sized firm. There is a limit to the division of labour and splitting down of production processes. As division of labour is pressed beyond a point, Indivisibility of factors comes in. Every machine has an optimum capacity for work and an optimum proportion with other factors. If this proportion is exceeded, internal Diseconomies follow.
b) Unwieldy management- Another reason for decreasing returns to scale is the difficulties of managing a large sized firms. It becomes difficult to coordinate and supervise the work of different departments as specialization increases. There is a limit to decentralisation of decission. Beyond a limit the operational efficiency of top management falls. These are the major factors behind internal Diseconomies.
External Diseconomies
External Diseconomies are a part of economic theory. Some writers argue that there must be a limit to the expansion process between industries. The forces which ultimately limit the expansion of an industry may be called external Diseconomies.
They have provided 3 main reasons for this :
a)When an industry gets localised or concentrated in one place the cost of transportation increases dur to congestion.
b)As an industry expands , there is scarcity of some raw material or other which cannot be totally substituted. As a result cost will start rising.
c)As an industry expands, there are difficulties of obtaining skilled workers, finance and credit because other industries also compete there. As a result of all these factors , external Diseconomies become more forceful as Industry matures .
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