1. Speed company a. Single markup Manufacturing unit MC=$200‚ selling and distribution cost Sales unit MC=$150 End user’s consumer demand P=1000-0.01Q. P is the price for each printer and Q is the quantity demanded in the marketplace. The marginal revenue corresponding to the demand is MR=1000-0.02Q. Total marginal cost MC=$200+$150=$350. The firm maximizes profit when MR=MC. Thus‚ 1000-0.02Q=350. Q=32500. Substituting Q into the demand equation we find the profit maximizing price‚ P
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NMIMS Global Access School for Continuing Education (NGA-SCE) Course: Business Economics SEM – I 1. Calculate Elasticity in the following cases: a) Assume that a business firm sells a product at the price of Rs 500. The firm has decided to reduce the price of the product to Rs 400. Consequently‚ the demand for the product is raised from 20‚000 units to 25‚000 units. Calculate the price elasticity of demand. ANSWER A: PRICE ELASTICITY OF DEMAND: MEANING: Price elasticity of demand
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What is paid for products/services = $80‚000 Total Economic Costs: Implicit Costs + Explicit Costs = $70‚000 + $80‚000 = $150‚000 b) Economic Profit: Total Revenues – Total Economic Cost = $175‚000 - $150‚000 = $25‚000 c) Accounting Profit: Total Revenues – Explicit Costs = $175‚000 - $80‚000 = $95‚000 d) New Implicit Costs = $500‚000 x 20% = $100‚000 Economic Profit: $175‚000 – ($100‚000 + $80‚000) = $ (5‚000) Chapter Two Technical Problem 1 Qd = 600 – 4PA – 0.03M – 12PB + 15F + 6Pe + 1
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1. Identify the real and/or financial assets that are involved in the following activities. (a) Toyota takes out a bank loan to finance the construction of a new factory; A: The bank loan is financial and the new factory is real. (b) Toyota pays of its loan; A: The loan is financial. (c) Toyota uses $10 million of cash on hand to purchase additional inventory of spare auto parts. A: Cash is financial and auto parts are real. Note that cash is generally considered to be a financial asset. Like
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current business situation with the aim of assessing the ability of these strategies through identifying the strengths and weaknesses of the company. From there‚ it can help Nestle understand more about how to put Nestlé’s products into new markets‚ especially Vietnam‚ and meet the elements of the economy. 3.1 Analyze possible alternative strategies relating to substantive growth‚ limited growth or retrenchment. There are three types of alternative strategies can be applied to business are substantive
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Foundations of Business Strategy Final Project – Case Gol Linhas Aéreas To: Mr. Paulo Sérgio Kakinoff (CEO) From: DBM Consultants Subject: GOL Business Plan Introduction GOL Transportes Aéreos is one of the main players in the South American airline industry. The company was founded in 2001 in Brazil‚ and started based on a low costs strategy. In less than a decade‚ the company started to gain market share and became the second largest Brazilian airline company in terms of Fleet Size
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Business Strategy -Strategic Intent Introduction Hamel and Prahalad argue that western companies used to "fitting" vision to adapt its resources‚ as a result‚ they will only seek to maintain their advantages. In contrast‚ Japanese companies dedicated to accelerating the pace of organizational learning in order to maximize resources‚ and trying to achieve seemingly impossible goals (Hamel and Prahalad‚ 1989:65). They believe these Japanese companies develop “an obsession with winning” among the
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Is there any link between Corporate Social Responsibility‚ Blue Ocean Strategy & Competing for the Future? Discuss. Corporate Social Responsibility Corporate initiative to assess and take responsibility for the company’s effects on the environment and impact on social welfare. The term generally applies to company efforts that go beyond what may be required by regulators or environmental protection groups. Companies have a lot of power in the community and in the national economy. They control
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Test 1 READING 1 hour PART ONE Questions 1-8 · Look at the statements below and at the five extracts on the opposite page from an article giving advice to people setting up a business. · Which extract (A‚ B‚ C‚ D or E) does each statement (1-8) refer to? · For each statement (1-8)‚ mark one letter (A‚ B‚ C‚ D or E) on your Answer Sheet. · You will need to use some of these letters more than once. 1. You should plan ahead in case a founder of the company chooses to leave it. 2. A company
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one way to do (business/ organization) strategy and discuss. According to what I have researched‚ there are four different generic strategies that strategic business units use. These are Cost Leadership strategy‚ Differentiation strategy‚ Focus strategy and Integrated Cost Leadership-Differentiation strategy. For me‚ these are all such big help but if I were asked to choose just one‚ I will choose the Integrated Cost Leadership- Differentiation Strategy. It is defined as the strategy used by companies
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