Comparing total revenue to total cost or marginal revenue to marginal costs B. Comparing average revenue to average costs or marginal revenue to marginal costs C. Comparing average variable costs to price or marginal revenue to price D. Comparing total revenue to average variable costs or price to average variable costs 3. Suppose that a firm determines that its marginal revenue is greater than its marginal cost‚ it would be better to Hint : Remember‚ marginal revenue is the change in revenue received
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Questions for Critical Thinking 1 Liberty University Business 620/ Global Economic Environment Salvatore’s Chapter 1: Discussion Question 9. How is the concept of a normal return on investment related to the distinction between business and economic profit? There is no normal return on investment. To be considered a return on investment‚ the internal rate of return should exceed the cost of capital. A low risk‚ ongoing enterprise might be satisfied with an IRR= 7-10%‚ while a
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loses €40.000 in a year. 4. It’s not a good idea for her to open the pub. 2. A commercial fisherman notices the following relationship between hours spent fishing and the quantity of fish caught: a) What is the marginal product of each hour spent fishing? Hours Kg of fish Marginal product 0 0 10 1 10 8 2 18 6 3 24 4 4 28 2 5 30 c) Use these data to graph the fisherman’s production function. Explain its shape. MPL equals the slope of the production function. The function
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produce enough quantity until their marginal revenue equals marginal cost (MR=MC). Currently‚ marginal costs are above marginal costs‚ causing a decline in profits. Equilibrium was determined through graphing both marginal revenue and marginal costs. The equilibrium occurs when the company produces an output of 7 with marginal costs of $88 and marginal revenue of $14‚000. It is apparent that the company is not a monopoly because marginal revenue would always equal marginal costs (Perloff‚ 2007). Another
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Some students prefer to study alone‚ while others prefer to study with friends. Although studying with friends has its advantages‚ in my point of view‚ I would like to study alone. The reasons are as follows. When you study‚ especially when you study some subjects that are hard to understand‚ such as math and physics you need to concentrate on them. That requires a quiet environment without distractions. Studying alone can provide that‚ and you can read your books and think of questions without
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Definition of marginal cost The marginal cost of production is the additional cost incurred in producing 1 extra unit of output. For most production activities‚ in the short run‚ marginal cost curves are U-shaped. 3. Average cost (1) Average or unit cost Average cost is the total cost divided by the total number of units produced. (2) Average fixed and variable cost Average fixed cost (AFC) =FC/q‚ steadily falling. Average variable cost (AVC) =VC/q. (3) Minimum average cost When marginal cost is
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Efficiency 2 2.3 Overall Recovery Efficiency The micromodel saturated with oil The micromodel after water flooding 3 2.3 Overall Recovery Efficiency • overall recovery factor (efficiency) RF Def: the fraction of oil produced from the initial oil in place at the start of the flood. RF ED E A EV ED displacement efficiency EA areal sweep efficiency EV vertical sweep efficiency E A EV Volumetric sweep efficiency 4 2.3 Overall Recovery Efficiency • Displacement efficiency ED – the fraction
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Answers: of the negative externalities associated with these goods. it is unlawful for private firms to provide public goods. private markets will never provide goods that they know the government could provide. the private marginal cost is less than the social marginal cost. Correct private markets will never provide goods at a price of zero‚ which is the efficient price. Question 2 0 out of 1 points A common-property resource is one that is Selected Answer: Incorrect [None Given] Answers:
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Economics – Managerial economics defined • Economics of Effective Management – Identifying goals and constraints – Recognize the nature and importance of profits – Understand incentives – Understand markets – Recognize the time value of money – Use marginal analysis • Learning managerial economics 1-2 Introduction Economics • The science of making decisions in the presence of scarce resources. – Resources are anything used to produce a good or service‚ or achieve a goal. – Decisions are important
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team had to wait almost an hour in the sun to figure out what we can do. Some students from our team decided to take a cab to arrive on time to keep our promise with children and the others had to go by deans’ cars. Because we were in a car‚ a small place‚ we not only discussed about the Lemonade Day but also was able to get to know each other deeply. Luckily‚ our team was able to Lafayette Recreation Center on time safely. As planned‚ our team was divided into four different small groups to teach children
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