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    Optimal Crm Strategies

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    loyalty of existing customers. We also consider the costs of implementing each CRM type separately as well as both types simultaneously. We show that the optimal CRM implementation strategy depends on the initial mass of loyal customers and diseconomies of scale in simultaneous implementation. We also find that the two types of CRM technologies are substitutive rather than complementary in generating revenue. We discuss why it is difficult to avoid overinvestments in CRM when the nature of the investments

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    Ib Business Hl Topic 1

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    Topic 1- Exam Style Notes 1.1 Nature of Business Activity What is a business? * Business- decision making organisation using inputs to produce goods and services which satisfy the needs and wants of a customer * Factors of production- “CELL” 1. Capital- used to produce goods (non natural‚ eg machinery) 2. Enterprise- management/planning of factors of production 3. Land- natural resources; renewable and non renewable 4. Labour- physical and mental efforts of people

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    Cost of Production

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    variable costs 3.3 Average costs 3. Types of cost curves 4.4 Marginal cost curve 4.5 Average cost curves 4. Costs in Short run and in the Long run 5.6 Short run 5.7 Long run 5.8 Economies of scale 5. Cost analysis in the real world 6.9 Economies of scope 6.10 Experiential learning & technological advances 6.11 Many dimensions 6.12 Unmeasured costs 6. Conclusion SUMMARY REFERENCES

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    Rationale Behind M&a

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    greater value than the sum of its parts as a result of enhanced revenues and the cost base. • Economies of Scale: Economic of scale refer to the reduction in unit cost achieved by producing a large volume of a product. Horizontal mergers aim at achieving economies of scale. This phenomenon continues while the firm grows to its optimal size‚ after which a firm experiences diseconomies of scale. • Economies of Vertical Integration: Economies of vertical integration are achieved in vertical mergers

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    Costs and Marginal Cost

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    CHAPTER 6 PRODUCTION EXERCISES 4. A political campaign manager must decide whether to emphasize television advertisements or letters to potential voters in a reelection campaign. Describe the production function for campaign votes. How might information about this function (such as the shape of the isoquants) help the campaign manager to plan strategy? The output of concern to the campaign manager is the number of votes. The production function has two inputs‚ television advertising and

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    run vs the long run what are the differences -p252 onwards TP‚ AP MP curves Short run cost concepts—TC‚ VC. MC Why are cost curves u shaped Whats shifts the cost ciurves Long Run costs—p262 The LRAC curve –p264 Economies‚ diseconomies and cosntant returns to scale in LR-p264 Ch 12: Perfect Competition Why is demand curve facing a perfect completion firm perfectly elastic –p275 Firms production decisions in perfect competition- p276; proifit maximizing output -p277 When will firm shut

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    Sample Exam for Economics

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    FUNDAMENTALS OF ECONOMICS 11th December 2011 EXAMINATION PAPER Section A Section B Answer ALL questions in SECTION A. Answer TWO questions in SECTION B. Clearly cross out surplus answers. Time Allowed: 2.5 Hours Candidates are allowed to bring in a scientific calculator for this module. Graph paper will be provided by the Centre. © NCC Education Ltd 2011 SECTION A ANSWER ALL QUESTIONS Question 1 a) Explain what is meant by the opportunity cost of producing a good. (2 marks) b)

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    Fair Value

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    Exhibit 1 1. (Exhibit 1: Total Product) Between points A and B the marginal product of labor is: A) increasing. B) zero. C) falling. D) infinite. Ans: C Exhibit 2: Total Product and Marginal Product | Labor per Day | Total Products (units per period) | 0 | 0.0 | 1 | 1.0 | 2 | 3.0 | 3 | 7.0 | 4 | 9.0 | 5 | 10.0 | 6 | 10.7 | 7 | 11.0 | 8 | 10.5 | 2. (Exhibit 2: Total Product and Marginal Product) The marginal product of the second worker is: A) 1

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    ES2550 W6 Analysis2lf

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    600  30 50 80 50 25 600 1675 1‚900  24 52 76 60 30 600 2125 2‚275  20 55.83 71.83 130 40 600 2775 3‚375 17.10 60.71 77.86 90 45 600 3625 4‚225 15 69.38 84.38 130 50 600 4725 5‚325 12 94.50 106.50 220 Identify the efficient scale of firm. Explain your reasoning. Efficient scale of firm is 30. As this is the minimum output at the minimized average total cost of production. As this is the output where the average total cost is minimum and is the minimum output at that average cost. Part II. Consider

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    variable over other ranges AC(Q): average cost function; describes how the firms average cost function or per unit of output costs vary with the amount of output it produces.  When average costs decreases as output increases‚ there are economies of scale Margincal cost: refers to the rate of change of total cost with respect to output the incremental cost of producing exactly one more unit of output. Margincal cost often depeds on the total volume of output. Short-run average costs: the period

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