is the total revenue (TR) to total cost (TC) method. TR-TC This method uses the highest total revenue (TR) less total cost (TC) to determine at what point the quantity produced maximizes total economic profit. In exhibit 1‚ the point at which profit maximization is achieved is at the production of 8 units. 2. The second method is the marginal revenue to marginal cost approach. MR=MC This method uses the point at which both marginal revenue and marginal cost are equal to each other to determine
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Lecture on Production and Cost of Production Basic Economics Production is the transformation of inputs into outputs. Production Function shows the relationship between quantities of various inputs that can be produced with those inputs per unit of time expressed in a table‚ graph or an equation. Q = f (K ‚L) given a technology Where: K = Capital and L = Labor Periods of Production 1. Short – run – the use of at the least one factor of production cannot be changed‚ or there are
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3. Difference between Unethical and Unlawful Behaviour in the Business Context By definition‚ ethics refers to “a set of principles of right conduct.” It is also defined as “the rules or standards governing the conduct of a person or the members of a profession‚” (www.thefreedictionary.com) and in business may be considered the standards governing the conduct of people in the business environment. Business ethics is the behavior that a business adheres to in its daily dealings with the world.
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the firms will ensure that the P = MC + min. ATC. However‚ for pure monopoly industry there is no entry and exit of firms as it is conquer by only one party. The marginal revenue (MR) curve lies below the demand and the produces output where MR = MC‚ so‚ the price exceeds the marginal costs (MC) and also exceeds the lowest average total cost (ATC). Pure Competition Pure Monopoly Price Price Quantity Quantity Pc D D Qc S = MC Pc MC Qc MR Qm Pm P = MC = min. ATC
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Chapter 15 Monopoly 1. Monopolies use their market leverage to a. charge prices that equal minimum average total cost. b. attain normal profits in the long run. c. restrict output and increase price. d. dump excess supplies of their product on the market. ANSWER: c restrict output and increase price. SECTION: 1 OBJECTIVE: 1 2. If government officials break a natural monopoly up into several smaller firms‚ then a. competition will force firms to attain
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Which private companies can be regarded as monopolists in Hong Kong? Do they charge higher prices? What do you mean by ‘higher prices’? Higher than what levels? P.7 Test yourself 19.1 Given the following information‚ find the total revenue and marginal revenue at different output levels: |Price ($) |Output (units) |TR ($) |MR ($) | |50 |1 | | | |40 |2 |
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Reprinted from Journal of Quantitative Economics Vol. 5 No. 2‚ July 2007‚ page 95-115 DETERMINANTS OF COST EFFICIENCY OF PUBLIC AND PRIVATE HOSPITALS OF KARNATAKA STATE IN INDIA MAATHAI K. MATHIYAZHAGAN1 Abstract The main objective of this paper is to analyze the determinants of cost efficiency of public and private hospitals of Karnataka State in India. This is estimated through the parametric (stochastic frontier) and nonparametric (data envelopment) methods by using the Hospitals Facility
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again that labor is the variable input and capital is the fixed input. Specifically‚ assume that the firm owns a piece of equipment having a 500-bhp rating. a. Complete the following table: |LABOR INPUT L (NO. OF WORKERS)|TOTAL PRODUCT TPL (=|MARGINAL PRODUCT MPL |AVAERAGE PRODUCT APL | | |Q) | | | |1 | | | | |2
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TYPES OF COST AUDIT * Cost Audit to assist Management : The main object of this type of cost audit is to make available accurate‚ relevant and prompt information to management to assist it in taking important managerial decisions. * Cost Audit on behalf of the Government: The government may appoint a cost auditor to conduct cost audit where it is necessary(a) to do so in the opinion of the government under section 233-B of the companies Act‚ 1956; (b) to ascertain correct cost of certain
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the market when they want to‚ however they don’t have ability to stop new firms from entering and old firms from leaving the industry. Producers and consumers have perfect knowledge of the market i.e. the producers are fully aware of market prices‚ cost in the industry‚ and the workings of the market and the consumers are fully aware of prices in the market‚ the quality of the products‚ and the availability of the goods. Monopolistic competition is a market structure with many competed firms and
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