ECONOMIC SYSTEMS IN HOSPITALITY The hospitality sector is always thriving and robust regardless of the type of an economic system it's operating in. An economic system refers to the specific way a community,country and government has organized its distribution of the key factors of production mainly labour,physical resources like land,capital,Information and technology,Entrepreneurs etc. Despite the unique challenges that each economic system has,the hospitality industry always finds a way to adapt and serve its customers and attract more. There are four most common economic systems practiced by different communities,states and communities around the world.These four are: a)Capitalism b)Socialism c)Mixed System d)Subsistence/Traditional Capitalism Capitalism is also called free market system.Found in first world democracies such as the unit
THE PPC AND PARETO EFFICIENCY IN HOSPITALITY INDUSTRY Named after the Italian Economist Vilfredo Pareto,Pareto Efficiency is used to evaluate the efficiency of a product resources allocation on the PPC. Any output combinations for the two products X and Y lying inside the PPC eg Points D ,E and F inefficient because they are below the possible maximum attainable output. The possible maximum attainable output combinations for the two products lie on the PPC. eg. Points A,B and C represent output combination points where resources available are fully and effectively employed in production. Output Levels outside the PPC are considered to be beyond the reach of the company and unattainable using the currently available resources. In Hospitality Sector lets say a Restaurant,new and improved technology deployment would push production outside the PPC. Staff Training and Consultancy to boost the productivity of the labor factor can push the output outside the curve. More outpu