What a Sock Can Teach Us

Manufacturing Socks in a Regional Cluster Helps Firms to Optimize Production

The Cost of Raising a Child

Including how much we spend on the tooth fairy, the cost of raising a child can simply be one total or it can involve different specific expenditures.

The Beginning of Terminal Gridlock

As cargo ships become larger, the supply chain benefits of their economies of scale are offset by the externalities they create at ports and beyond.

Weekly Roundup: From Slow Shopping to Fast Shipping

Our everyday economics include consumption expenditures, Pigovian taxes, variable pricing,economies of scale, unskilled labor, national income and the money supply.

What UPS Learned from Henry Ford

Because free shipping creates pressure on retailers to send parcels more cheaply, UPS has had to lower costs by increasing processing productivity.

The Cost of Raising Children

Behavioral economists like Gary Becker say that the family is like a factory where land, labor and capital are combined to “produce” goods like children.

How the New Panama Canal Affects Us

When larger vessels use a wider, deeper Panama Canal, they will create economies of scale and shift the invisible lines that show worldwide supply chains.

Ukrainian Economics

Fewer bottles of kodrinskoie-sparkling will be served at Russian holiday celebrations. Declaring that Moldova’s exports no longer met its food quality standards, Russia has blocked Moldovan wine exports. In the past, Ukrainian cheese and chocolate have also been on and off…

Restaurant Economics: How to Make 1500 Meals a Day

At 2 am, converging at the delivery entrance of Balthazar in NY’s SoHo are mussels from New Zealand, russet potatoes from Idaho, steak from the Midwest and chicken breast and bacon from Prince Edward Island while some Little Skookum oysters originated in Washington State.…

Mass Production: A BMW

I wonder if Henry Ford would have been surprised by this 15 minute BMW factory production video tour (below). Few people, lots of robots, the process begins with a colorless shell and ends with the BMW moving off the assembly…