Principles of Microeconomics (ECO2103) Diploma in Business Administration Mehdi Tasaloti mehdi.tasaloti@newinti.edu.my Faculty of Business‚ Communication & Law (FOBCAL) INTI International University August 2014 Session Faculty of Business‚ Communications and Law INTI International University 1 Class syllabus for Long semester Week 1-3 4-6 Topic Economics Concepts‚ Issues & tools Price Theory ( Demand & Supply) / Individual assignment/ Test 1 7&8 Applications
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Profit maximization from the marginal revenue to marginal cost approach is where marginal revenue equals marginal cost. The calculation used to determine marginal revenue is the change in total revenue divided by the change in quantity. In this scenario‚ marginal revenue decreases by $10 at every additional increment of widget production. The calculation used to determine marginal cost is the change in total cost divided by the change in quantity produced. Marginal cost increases by $10 at every
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between marginal cost (MC) and marginal revenue (MR) is fairly easy to see‚ marginal cost is the extra cost from the production on one or more units of a particular item verses marginal revenue is the change in total revenue from the sale of one or more units of a particular item. There is a principal that explains the relationship between the two best called the MR=MC rule‚ which states “that a firm will maximize its profit (or minimize its losses) by producing the output at which marginal revenue
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according to McConnell (2012): 1. Total revenue to total cost - profit maximization is achieved when the difference of the total revenue minus the total cost is at the highest point. 2. Marginal revenue to marginal cost - means that profit maximization occurs when marginal revenue and marginal cost are equal. Marginal cost is the change in total cost as output changes by one unit. The change in total revenue from the sale of one additional unit. B. Explain the calculation used
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* Question 1 0 out of 1 points | | | Duopolists A and B face the following demand curves: QA = 120 2PA + PB and QB = 120 2PB + PA. If both firms have zero marginal cost and they form a cartel‚ what is the profit-maximizing price and quantity?Answer | | | | | Correct Answer: | a. P = 60‚ Q = 120 | | | | | * Question 2 1 out of 1 points | | | Total surplus in a market is a measure of:Answer | | | | | Correct Answer: | c. social welfare created by the market
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Name PHI208: Ethics and Moral Reasoning Peter Singer – “Famine‚ Affluence‚ and Morality” Instructor: Date In reading the Peter Singer – “Famine‚ Affluence‚ and Morality” article I believe his argument is to help those in need. He has a lot of good points and I think he does a good job in arguing and defending from different perspectives. And in doing this makes it easier for the reader to see both sides. Singer’s argument to help others with food and shelter
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c-Energy’s Red Hill Plant To go with Darden Case UVA-QA-0726‚ c-Energy’s Red Hill Plant: Meeting the SO2 Challenge Richard Wall’s calculations of the economic impacts of the three options are on page 4 of the case. As you realize‚ his numbers are incomplete. This assignment will require you to use your spreadsheet modeling skills and Crystal Ball to analyze the options more fully. Here are the questions for you to answer: 1. (25 points) Jenny Becker is interested in what you can tell her about
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taking that action minus its cost. • Question 4 10 out of 10 points Use the following cost table to answer the following question. Given the information on benefits and costs above‚ the optimal quantity equals: Quantity Marginal Benefit Average Cost Marginal Cost 1 2.99 1.00 1.00 2 2.99 2.00 3.00 3 2.99 3.00 5.00 4 2.99 4.00 7.00 Given the information on benefits and costs above‚ the optimal quantity
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Managerial Economics Unit 6 Unit 6 Cost Analysis Structure: 6.1 Introduction Case Let Objectives 6.2 Types of Costs 6.3 Cost-Output Relationship: Cost Function 6.4 Cost-Output Relationships in the Short Run 6.5 Cost-Output Relationships in the Long Run 6.6 Summary 6.7 Glossary 6.8 Terminal Questions 6.9 Answers 6.10 Case Study Reference/E-Reference 6.1 Introduction In the previous unit‚ we learnt that output does not always increase proportionately‚ with increase
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looking at the marginal revenue to marginal cost approach. Marginal revenue is the change in total revenue resulting from the sale of an additional unit of product. Marginal cost is the cost of producing that one extra unit. To find if profits are maximized‚ marginal cost is subtracted from marginal revenue. Profit maximization occurs when marginal revenue exceeds marginal cost. This approach is only used if deemed profitable‚ if not‚ it is best to not produce extra. B) Marginal revenue (MR)
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