A: Marginal revenue is the change made in total revenue a company makes caused by an additional item being produced. This is calculated by figuring the difference between the revenue produced both before and after a single unit increase in the production rate. If the price of a product is constant, the marginal revenue and price are the same. Sometimes an additional item will only sell if the price goes down and that leads to the consideration of marginal cost or the cost of producing one more item. If marginal cost exceeds marginal revenue, further production is not recommended since it would result in a loss. If marginal revenue exceeds marginal cost, then the production of an additional unit would be advised since it would result in an increase in profit.…
Marginal Cost can be termed as the change in the total cost from an additional unit that is produced by a firm. Example, the total cost when 10 units are produced is $30, and total cost incurred when 11 units are produced is $33.…
The marginal revenue is the change in total revenue resulting from selling one more unit of output. If marginal revenue is greater than marginal cost then total revenue would be increased. If marginal cost is greater than marginal revenue, it would then decrease. Furthermore, if both marginal revenue and marginal cost are equal, it would remain constant. In this given scenario, we can calculate the…
2. Profit maximization can also be determined by looking at the marginal revenue to marginal cost approach. Marginal revenue is the change in total revenue resulting from the sale of an additional unit of product. Marginal cost is the cost of producing that one extra unit. To find if profits are maximized, marginal cost is subtracted from marginal revenue. Profit maximization occurs when marginal revenue exceeds marginal cost. This approach is only used if deemed profitable, if not, it is best to not produce extra.…
The definition of Marginal revenue is the extra revenue that will be made when one additional unit of any given product is sold. The sum of sales or a pre-determined quantity of a particular product is called total revenue. “Marginal revenue tells a firm how much additional money selling each additional product will gross; total revenue tells a firm how much they will make by selling any given quantity. Marginal cost is the cost a firm incurs to produce one more unit of a product. Total cost is the total cost economically a firm pays for producing a given quantity of a certain product.” (Stariana, November 2012)…
A non-economist calculates that these costs sum to $0.70/mile and uses this figure to compute that the 400 mile trip will cost $280 by car. The non-economist concludes that you should take the bus, because it is cheaper.…
o Marginal Revenue is computed by finding the difference of the previous two quantities (total revenue of pair #2 - #1)…
In a business setting, managers make decisions on cost effectiveness based on what information is provided to them. This day-to-day decision can lead to the success or failure of the business. Two types of analysis that a manager can use are incremental and/or comprehensive analysis.…
Therefore in the Book of Unknown Americans Henriquez shows the hardships an immigrant faces when coming to America. Mayor and Maribel are children of immigrant parents who have been given the opportunities to succeed but face obstacles because of their vulnerabilities both as immigrants and as individuals. . Families such as the Riveras and Toros came to America for specific reasons such as a chance for better lives or opportunities for their families, but along the way they encounter big challenges.Henriquez shows the struggles of an immigrant in the Book of Unknown…
In the essay “In praise of margins,” Ian Frazier explains the importance of having marginal activities. He describes these activities as something you do with no purpose, where you are free to let your mind run wild. Sometimes marginality is tangible in the sense you can actually create something while doing a marginal activity. Frazier’s marginal place as a child was eh woods. There he and his friends would pretend to be explores and try out odd ideas. Odd ideas that later they would come to realize were learning experiences. He uses riding a biked down a trail as an example. As an adult he goes back to the woods to fish but with a goal in mind. Frazier argues that “marginal behavior can be the most important kind. “In fact marginal activities are of benefit to us and those around us. With the correct mindset many activities can be considered marginal. Marginal activities are about what you are passionate about and can sometimes lead to educational opportunities and/or technological advancements.…
5. No because the government regulates everything that happens and takes years to do so.…
2. Consider an economic agent who has preferences that are represented by the utility function: u(x, y) = √ xy…
* It can be used as a planning tool to compare the gross margins of enterprises with similar fixed costs such as wheat, barley or OSR and aid in deciding which one to go with in the future.…
1. The following table shows output per hour for Martha and Stewart who make gift…
Q (K; L) = K 1=4 L2=3 1. Determine (using the appropriate de…nition) whether there are increasing, constant or decreasing returns to scale in this industry. (2.5 points) 2. Do you expect many or few …rms to be present in this market? Why? Justify your answer. (2.5 points) 1…