microeconomics argues unequivocally that attempts to assign cost to individual products in a "joint" set constitute a complete waste of time--"just maximize the total revenue over the batch." Like the comparable adage to "price so that marginal cost equals marginal revenue‚" the economists’ advice about joint costing is certainly accurate‚ given the assumptions‚ but not particularly useful in practice. Most managerial accountants‚ including this author‚ believe that there are important managerial
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diminishing returns in the short-run increase marginal cost of glass production as the necessity of innovation and continuous production makes producer buy more technological and faster machines and equipment but the staff cannot use them efficiently for a definite period‚ which increase total cost and marginal cost but not brings about same increase in output levels. Decline in quality of raw materials also explains the diminishing returns and rising marginal costs. The buyer range of glass market
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ASSIGNMENT 1 DIPECO03 Basic Economics Question 1 Flow of Goods and Services Flow of Cash EXAMPLES OF TRANSACTIONS ON MARKET FOR GOODS AND SERVICES Question 1(a) and 1(c) EXAMPLES OF TRANSACTIONS ON MARKET FOR FACTOR OF PRODUCTION Question 1(b) and 1(d) Question 2 Consider the market for minivans. For each of the events listed here‚ identify which of the determinants of demand or supply
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Lecture 1: Microeconomics and Biz Strategy References: Pindyck&Rubinfeld. Chap.1 What are the firm’s important functions and strategies ? 1. Selling need to know consumers purchasing behavior for example‚ what if the price increases: price elasticity of demand marketing/product positioning strategies Topics 3-5 lectures 2. Production Supply function/producers output decision how to produce? Firms output decision: Short run vs LR For example‚ should the firm continue producing
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Individual Business Proposal Bill Bartlett ECO 561 March 18‚ 2013 Laurie Gazzale Individual Business Proposal Introduction to Vision Quest Coaching Triathlon training and coaching is a passion and hobby. I work as a triathlon coach at Vision Quest Coaching in the greater Chicago area. In 2000‚ Robbie Ventura (a former professional cyclist for 12 years‚ member of the U.S. Postal Service cycling
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quantity requires an understanding that “as a business owner increases sales‚ so do expenses. When expenses increase to an amount that no longer maximizes profits‚ marginal profit becomes negative” (Hunter‚ 2013).
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Name__________________ ID _______________________ Midterm Exam MBA501 There are 25 multiple choice questions and each question is worth 3 points. 1) Until recently you worked as an accountant‚ earning $30‚000 annually. Then you inherited a piece of commercial real estate bringing in $12‚000 in rent annually. You decided to leave your job and operate a video rental store in the office space you inherited. At the end
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Chapter 04 Demand 10. The long-run price elasticity of demand for a product is generally _________ the short-run elasticity for the same product. A. lower than B. equal to C. higher than D. not comparable to 11. Assume the demand function for skin care products is given by Q = 1‚000 – 20 P + 5I. If P=$25 and I=$1‚000 currently‚ then: A. skin care products are a normal good. B. the elasticity of demand is equal to 11. C. skin care products are inferior. D. The price is too high
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elastic good. An elastic good is more of a luxury‚ and fast-food is not a requirement to survive. * An elastic good‚ the price must be set at a reasonably low level to increase the revenue. * McDonalds can use the formula of marginal cost = marginal revenue to determine its pricing. Demand is elastic when it is easily affected by the raising or lowering in the price of a product or service. * When McDonalds raises its prices‚ sales will decrease. Decreasing prices‚ McDonalds will
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PERFECT COMPETITION PERFECT COMPETITION Perfect competition (PC) is also called pure competition. Market structure that characterized by many small firms‚ which sells homogenous‚ easy entry and exit‚ and perfect knowledge of the market. Many small firms The exact number of firms cannot be stated‚ but there are a large number of small firms that each firm has no significant share of output. Homogenous products The products produced by firms are identical or standardized
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