176 266 390 Price $50 50 50 50 50 50 50 50 50 50 1. (Table: Barrels of Oil) Refer to the table. How many barrels of oil should the company produce to maximize profit? A) 6 B) 7 C) 8 D) 9 2. (Table: Barrels of Oil) Refer to the table. What is the marginal revenue of producing the fifth barrel of oil? A) 61 B) 50 C) 200 D) 250 3. Stating that TR = TC is equivalent to stating that: A) MR = MC. B) P = AC. C) P = Average fixed cost. D) MR = P. Page 1 4. At a ski resort located over one hour from the
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organization may be classified in a number of different ways for a number of different purposes. I will also be looking to find companies that use a variety of different costing techniques and methods. I will also be discussing the comparisons between marginal and absorption costing and how the concept of activity based costing can also be compared with these. To complete the assignment I will be using a combination of lectures notes‚ text books and the internet to research the various ways of cost classification
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Cost Concepts for Managerial Decision Making Prepared for instructional use in Economics For Managers ECG 507 College of Management North Carolina State Universiy © Stephen E. Margolis 2000 Soon we will be using the concepts of cost that are presented in Landsburg’s chapters five and six to analyze market behavior of firms. With a bit of interpretation‚ however‚ these concepts have immediate application to ordinary decisions that
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RUNNING HEAD: BUSINESS PROPOSAL Business Proposal Margarita Gibbons ECO/561 September 22‚ 2014 Maria Hamideh Ramjerdi RUNNING HEAD: BUSINESS PROPOSAL Business Proposal In our day and age‚ companies large and small try to lure the consumer to buy their products‚ by coming up with new items. Coca Cola is a company that lures its consumers by coming up with new flavors
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between the unregulated monopoly price and the optimally regulate price (determined by the intersection of the firm’s marginal cost and the market demand curve). As usual‚ the monopoly determines its optimal output on the basis of MR = MC. Here‚ however‚ it cannot charge a price in excess of p*. So‚ for any output less than Q(p*) (where Q(p) is the demand function) its marginal revenue is p*. On the graph below that gives: pm p* MR MC Demand q m q * 2) The inverse demand curve
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Marginal Costing Versus Absorption Costing The MAIN DIFFERENCE is the treatment of FIXED COSTS. This treatment can produce different profit figures.The two methods of costing produce different profit levels dependent upon the net change in the level of stock during the period.This is due to the VALUATION of the net change in stock during the period. In [...] Over/(Under) Absorption Of Overheads In earlier articles‚ we discussed about absorption costing‚ its advantages and disadvantages and
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70‚ 80‚ 90‚ and Quantities: 5‚ 10‚ 15‚ 20‚ 25‚ 30‚ 35‚ 40‚ 45‚ 50‚ 55‚ 60‚ 65.) 2. Or Kids is a representative firm in the home grown orchid industry. The firm has a short run total cost curve given by: TC = 50 + 2q + 2q2 and a marginal cost curve given by: MC =2 + 4q. Or Kids operates in is competitive industry with the following Market Demand and Market Supply Curves: QD = 1‚410 – 40 P (Demand) QS = -390 + 20 P (Supply) a. What is the equilibrium
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Explain how an organisation can cost a product and determine its price at any activity level The main costs and elements that a business needs to consider‚ taking into account the nature of these costs as well are: * Expense of buying vehicles or maintaining it * Mortgage * Business Rates * Wages Extra / Wages * Drawings * Advertising * Insurance * Loan repayment interest * Loan repayment capital * Purchases / VAT on purchases * VAT paid to C & E
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kind of barriers 4. The products are homogenous: all the firms in the market sell homogenous products 5. No cost of transportation: under perfect competition‚ it is assumed that the cost of transportation does not exist for carrying goods from one place to another. 6. The most significant feature of perfect competition is the existence of an automatic price mechanism. Price of a product is determined by the interaction of total demand and total supply in the market. Since there are many sellers
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their decision. The premises for these models is to find out what & how to produce products‚ this is modeled after the Traditional Economic System. Economists are concerned with exactly how much a person will pay for "goods" and that is considered marginal utility. All of this ties to the Diamond-Water Paradox because the demand for diamonds is high as is the price‚ with that the demand for water is also high but the cost is significantly lower. As the consumption of water increases it is valued
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