PROFIT MAXIMIZATION [See Chap 11] 1 Profit Maximization • A profit-maximizing firm chooses both its inputs and its outputs with the goal of achieving maximum economic profits 2 Model • Firm has inputs (z1‚z2). Prices (r1‚r2). – Price taker on input market. • Firm has output q=f(z1‚z2). Price p. – Price taker in output market. • Firm’s problem: – Choose output q and inputs (z1‚z2) to maximise profits. Where: π = pq - r1z1 – r2z2 3 1 One-Step Solution • Choose (z1
Premium Profit maximization Economics Profit
Profits Katherine Carpenter Liberty University Econ 213 Gwartney states that profits are; “An excess of sales revenue relative to the opportunity cost of production. The cost component includes the opportunity cost of all resources‚ including those owned by the firm. Therefore‚ profit accrues only when the value of the good produced is greater than the value of the resources used for its production.” An example of a profit would be bakery offers a cheesecake for $20 and the total cost to make
Premium Microeconomics Economics Costs
The Challenges of Fair Trade Historically‚ coffee cultivation had brought a positive influence in developing countries to alleviate rural poverty. Paige (1997) and Williams (1994) also claimed that coffee cultivation had enabled households to develop their land holdings in sustainable‚ high return activity‚ and gainfully employ their family labor (as cited in Barham‚ Gitter‚ Lewis & Weber‚ 2011‚ p. 116). However‚ the global coffee market has fallen into crisis in recent years. A research conducted
Premium Fair trade Coffee
Not everyone believes that life is not fair‚ but everyone eventually will reach a point in your life that this will come into play. For example‚ “At the front door‚ we saw fire spewing from Miss Maudie’s dining room windows (Lee 69)”. Miss Maudie did not plan this. She lost everything in her house. Maudie did not think anything like this would happen ever‚ which is not fair in her part. Therefore‚ when people say life is not always fair there are right for sure. People who could be the kindest and
Premium Bullying 2007 singles 2008 singles
1.0 INTRODUCTION 1.1 Background This section will present detailed explaination of non resident‚spend and money and description of how do non resident of student UITM Arau spend their money. 1.2.1 Definition of non-resident‚ spend and money. “Non resident student” is any student who is not residing within the school district with intent to make his residence within the school district a permanent residence. Student who only move into the school district on a temporary basis for
Premium Student Education University
Roy Clay 4/10/12 Fair Weather Friends 2 The majority of us have friends‚ the friends we have known since childhood‚ the friends we would do anything for; the friend
Premium Friendship Interpersonal relationship
Separate But Equal‚ Is It Fair? Although people say “Separate but Equal”is fair‚ is it really? In fact most of the time it’s not necessarily fair. Back then African Americans were treated unfairly in more ways than one. They had separate seating sections at baseball games. Instead of sitting in seats they would have to stand on boxes. Each person only got one box‚ often leading to children not being able to watch the game due to the wooden fence that stood in front of them. Plus‚ it doesn’t look
Premium African American Black people Race
CHAPTER 9 PROFIT PLANNING AND BUDGETING Questions‚ Exercises‚ Problems‚ and Cases: Answers and Solutions 9.1 See text or glossary at the end of the book. 9.2 A cost center is a responsibility center in which management is responsible only for costs. In a profit center‚ management is responsible for both costs and revenues. 9.3 An investment center is a responsibility center in which management is responsible for managing costs‚ revenues‚ and assets. A profit center is not responsible
Premium Variable cost Budget Costs
Capital Structure and Profit Capital Structure Definition A unite of a company’s long-term debt‚ specific short-term debt‚ common equity and preferred equity. The capital structure is how a firm finances its overall operations and growth by using different sources of funds. Debt comes in the form of bond issues or long-term notes payable‚ whereas equity is classified as common stock‚ preferred stock or retained earnings. Also‚ Short-term debt such as working capital requirements is considered
Premium Finance
Comm Review 3 (Final) -Chapter 11: 1.) The 8 steps of the audience-centered model of public the speaking process: -Selecting a Narrow Topic -Identifying Purpose -Developing a Central Idea -Generating Main Ideas -Gathering Supporting Material -Organizing Your Speech -Rehearsing Your Speech -Delivering Your Speech *(9th) CONSIDER THE AUDIENCE 2.) The Significance of Being an Audience-Centered Public Speaker: -Someone who considers and adapts to the audience at every stage of
Premium Regulatory Focus Theory Nonverbal communication Idea