2) Explain why a profit maximizing firm produces the output that equates marginal revenues to marginal costs (MR=MC). In a perfectly competitive market‚ producers are price-takers and consumers are price-takers. There are many producers‚ none having a large market share and the industry produces a standardized product‚ also free entry and exit of the industry. They produce using the optimal output rule: produce where marginal revenue equals marginal cost as Smith (1904) demonstrated. Figure
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Possible Selves Possible selves refer to the selves taht you might become. "Possible selves are highly personalized‚ vivid‚ futuristic images of the self that feflect hopes‚ fears‚ and fantasies" (Hockenbury and Hockenbury‚ 2003). Some examples of positive hoped for possible selves might be the successful self‚ the creative self‚ the rich self‚ the thing self‚ or the loved and admired self. Some examples of the negative dreaded possible selves might be the alone self‚ the depressed self‚ the
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builds 2 plants and firm 2 builds 4 plants‚ the market price will be 9 − (2 + 4) = 3 per unit. At this price firm 1 will make a profit of 2 × 3 − 2 × 3.5 = −1 while firm 2 will make a profit of 4×3−4×3.5 = −2. Assume‚ no firm will build more than 4 plants. Cost (Q) = 3.5 * Q Price = 9 -(Q1+Q2) 1. Set up a 4-by-4 table that records the profits of each firm for each possible choice of the number of plants to build. Then‚ use your table to answer the questions below. Price Firm 2 0
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A charity for profit entity exists‚ and its role is to serve a charitable mission‚ but they are legally for profit. Profit charities basically focus on revenue and runs like a company. Their aim is generating profit for their company. Because it is a charity for profit‚ they have to pay taxes for the profit they made‚ while a nonprofit charity will not be taxed. Charites for profit can be categorized into two different sections. Firstly‚ the benefit corporation charities. They can maximize their
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securities. In 1351 the Venetian government outlawed spreading rumors intended to lower the price of government funds. Bankers in Pisa‚ Verona‚ Genoa and Florence also began trading in government securities during the 14th century. This was only possible because these were independent city states not ruled by a duke but a council of influential citizens. Italian companies were also the first to issue shares. Companies in England and the Low Countries followed in the 16th century. The Dutch East
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Everything is possible. Charles F. Kettering said that “Nothing ever built to touch the skies unless some man dreamed that it should‚ some man believed that it could‚ and some man willed that it must.” Everything is possible in each of our lives; we simply have to sense it‚ see it and act upon it. After all‚ where would we be without men like Thomas Edison who believed there could be light‚ saw the vision in his mind and acted upon everything that was possible for him? Emily Dickinson phrased it
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JACOB‚ JOHANNA IRENE M. DAR4 ARCDES6 Cities for a Small Planet by Richard Rogers Earth’s the only planet that is known to have life: living forms. It has a moderate climate and water in its three forms: solid‚ liquid and gas. Looking outside from space‚ earth’s beauty tells how alive and great it is still has its own fragile tendencies despite of being perfect in a sense. These tendencies regard the following: pollution (air and water)‚ extreme floods‚ deforestation‚ resource depletion
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Hiring for profit In the society we live in today‚ where the outside beauty is more important than the inner beauty. Businesses realized how to use that beauty to make a great amount of benefit become quite successful. Attractive and trendy employees will help draw more customers to a specific store and will generate more profit for that company. This is a commonly practiced hiring technique that is not against the law. It might be seen as discrimination in only hiring only certain type of
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net profit by 2015. The goal can be reached ONLY by changing and adapting the menu to a vegetarian one. Some loyal customers will be lost‚ because the veal cutlet sandwich will basically disappear from the menu by 2015. Nevertheless contribution margin is increased by giving advantage to products that have more contribution margin per limited resource. Analysis shows that vegetarian sandwiches are the future key success factors for the restaurants. Livoria cannot reach the 1.1M in net profit unless
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PROFIT MAXIMIZATION: REALITY OR A THEORETICAL OBJECTIVE? Research Compiled for The Paper Store‚ Inc. by Amy Sorter 3/2009 For More Information on This Paper‚ Please Visit www.paperwriters.com/aftersale.htm Introduction Though many people equate economics with finance and accounting‚ it ’s actually a social science‚ a study of behavior and how rational people behave when it comes to allocation of resources. Within the study of that social science are many theories in which economists attempt
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