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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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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MEANING Profit maximization is the traditional approach and the primary objective of financial management. It implies that every decision relating to business is evaluated in the light of profits. All the decision with respect to new projects‚ acquisition of assets‚ raising capital‚ distributing dividends etc are studied for their impact on profits and profitability. If the result of a decision is perceived to have positive effect on the profits‚ the decision is taken further for implementation
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HHD 53rd Transportation Battalion 7th Sustainment Brigade Fort Eustis‚ VA 23604 HHD 3rd Platoon Weapons Maintenance SOP AFD-Q6FG 10-0013 Effective Date 29 October 2013 1. PURPOSE: To address the clearing‚ disassembling‚ cleaning‚ inspection for serviceability‚ lubricating and reassembling of the M4 or M4A1 carbine. 2. APPLICABILITY:
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In the maintenance environment it is important to have a clear understanding of the layout of maintenance strategies and the techniques that form the basis of the strategies. The different maintenance techniques namely‚ preventative‚ reactive and proactive maintenance are not so effective if used independently‚ but as a combination it serves as a powerful maintenance tool (Conradie‚ 2015). The cold box consists of sixteen main equipment where it can be divided into categories to differentiate what
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managers and whether they should join the joint venture or not. Profit maximisation Profit maximisation is the process by which a firm determines the price and output level that returns the greatest profit. There are several approaches to this problem. The total revenue - total cost method relies on the fact that profit equals revenue minus cost‚ and the marginal revenue - marginal cost method is based on the fact that total profit in a perfectly competitive market reaches its maximum point where
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02/22/11 CHAPTER 5 1. If there is a problem with the cable‚ the entire network breaks down. Maintenance cost may be higher in the long run. Performance degrades as additional computers are added or on heavy traffic (shared bandwidth Limited cable length and number of
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1. [Sales Growth Rates‚ Sales‚ and Profits] Petal Providers Corporation opens and operates “mega” floral stores in the U.S. The idea behind the super store concept is to model the U.S. floral industry after its European counterparts whose flower markets generally have larger selections at lower prices. Revenues were $1 million with net profit of $50‚000 last year when the first “mega” Petal Providers floral outlet was opened. If the economy grows rapidly next year‚ Petal Providers expects its
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Profit Maximization Marginal revenue is the change in revenue which comes from the sale of an additional unit of output. The relationship with total revenue is that total revenue is used in the formula to calculate marginal revenue. A company can calculate marginal revenue by dividing the change in total revenue with the change in output quantity. Because of demand‚ as production quantity increases the revenue per unit will decrease. On the other hand‚ marginal cost is the change in the total
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Chapter 40 – Oxygenation YouTube videos 32bravo711. (2014‚ January 3). Brief Physiology of Oxygenation [Video file]. Retrieved from http://www.youtube.com/watch?v=Cie544oWvhY I really liked this video. It’s very thorough as far as it’s content. The video has great visuals‚ is easy to understand‚ and the speaker or creator of the video is knowledgeable and easy to listen to. The cons I would say about this video are that it is very lengthy for a YouTube video. It’s a lot like a lecture you’d
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