regarded pursuing is profit maximization. It best explains the normal behavior of the firm. The profit maximization model is based on the assumption that each firm seeks to maximize its profit under certain constraints (technical and market). Propositions of the Model: • By employing certain techniques of production‚ a firm converts various inputs into outputs of higher value. • Each firm aims to earn maximum profit. • A firm operates under given market conditions. • Alternative course of actions
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Profit maximisation has been one of the main aims of the firms. The generally accepted view is the long run will wish to maximize profit. Marginal Cost and Marginal Revenue can be used to find the profit maximising level of output. Marginal cost is the addition to total cost of one extra unit of output. Marginal revenue is the increase in total revenue resulting from an extra unit of sales. Economic theory predicts that profits will be maximised at the output level where marginal cost equals maginal
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ALTERNATIVE MARKET STRUCTURES It is traditional to divide industries to categories according to the degree of competition that exists between the firms within the industry. There are four such categories. At one extreme is perfect competition‚ where there are many firms competing. Each firm is so small relative to the whole industry that it has no market power to influence price. It is a price taker. At the other extreme is monopoly‚ where there is just one firm in the industry‚ and hence no competition
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unit price and contribution for the product are calculated as $3.02 and $1.66‚ which means that the expense $1‚478‚000. It seems that it is not wise to introduce the product into a larger market which covers 19 cities‚ but a forecast of the sales and profit of the 19 cities market is necessary. Table 2 shows the result of forecasting and the total contribution in the bigger market which is $5‚149‚320. Let us assume that the costs of up-front investment in market research‚ setup/auditing‚ and public relations
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Reflection on Alternative Assessments Traditional and alternative assessments share some key elements‚ yet differ as well. All assessments‚ whether given as a test after a unit or alternative‚ should be measurable and be reliable and valid by having clear criteria to measure the learning targets. Traditional and alternative assessments generally differ in timing‚ feedback‚ student’s involvement‚ and how the teacher uses the information though. The time in which traditional assessments such
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Chapter 14: Alternative Work Arrangements Please read this Case Study and Evaluate options. Should the availability of alternative work arrangements for private sector employees in the United States be mandated by law? Why or Why not? Explain your answer. No; because it should be employees choice if they want to work for an employer that has alternative work arrangements in their organization. Alternative work arrangements programs or guarantee employee participation in established programs‚ implementation
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P5 – Profit & Loss and Balance Sheet Profit and Loss Sheet: | |£ |£ | |Sales: | |80‚000 | | | | | |Less Cost of Sales: | | | |Opening stock |32‚000 | | |Purchases |6‚000 | | |Less Closing stock
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Complementary and Alterative medicine (CAM) consumer is constantly increasing. According to the National Health Information survey in 2004‚ nearly 40% of American adults used some form of alternative therapies and spend around 30 billion dollars per year on unconventional medicine (Kayne 2008‚ p.93). The term “alternative medicine” refers to all the therapeutic practice that is not part of the conventional medicine such as: herbal medicine‚ acupuncture and yoga (Hirsch‚ 2009). Allopathic medicine is based
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Volume 3‚ No. 3‚ March 2012 Journal of Global Research in Computer Science TECHNICAL NOTE Available Online at www.jgrcs.info FAST AND EFFICIENT METHODS FOR PROFIT & LOSS RELATED PROBLEMS (FEM-PLRP) Gaurav Dobriyal* Dept. Of Computer Science‚ Dev Bhoomi Institute of Technology‚ Dehradun (U.K.)‚ INDIA dobriyal.gaurav74@gmail.com* Abstract: This is one of the important or frequent asking lessons in all written examination. In this paper I try to give some of the effective tricks to solve
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Cost‚ Volume‚ and Profit Cost-Volume-Profit (CVP) analysis is a managerial accounting tool that expresses the simplified relationship between cost‚ volume‚ and profit (or loss). CVP analysis is based on several factors and assumptions and uses a formula to express the relationship by equation or graphically and can be used with great effect by managers who understand the limitations of the analysis. Cost-Volume-Profit (CVP) analysis is a managerial accounting tool that expresses the simplified
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