Chapter 9 1. All firms‚ no matter what type of firm structure they are producing in‚ make their production decisions based on where: marginal revenue equals marginal costs. 2. According to the table below‚ when profits are maximized‚ profits are equal to: $2. 3. Many economists believe that the market for wheat in the United States is an almost perfectly competitive market. If one firm discovers a technology that makes their wheat taste better and have fewer calories than all other wheat
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description of a competitive firm’s supply curve is as follows: The competitive firm’s short-run supply curve is that portion of the a. average total cost curve that lies above marginal cost. b. average variable cost curve that lies above marginal cost. c. marginal cost curve that lies above average total cost. d. marginal cost curve that lies above average variable cost. 2 Name: ________________________
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is the difference between average‚ total‚ and marginal revenue? What is the shape of the total and marginal revenue curves for the individual competitive firm? 6. Why does price equal marginal revenue for the purely competitive firm? What is the relationship to the demand curve for the firm? 7. Below is a demand schedule facing an individual firm. Complete the table by computing average revenue‚ total revenue‚ and marginal revenue. Then answer the following two questions:
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MBA /PGDBA/MBABF Semester 1 MB0041/MBABF –Financial and Management Accounting- Q1. An accountant finds that the trial balance of his client did not tally and it showed an excess credit of Rs. 69.74. He transferred it to a suspense account and later discovered the following errors. a) Rs. 44.37 paid to Anand has been credited to his account as Rs. 34.37. b) A purchase of Rs. 145.50 has been posted as Rs. 154.50 to the purchases account. c) An expenditure of Rs. 158 on repairs
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discuss the short run competitive equilibrium versus the long run competitive equilibrium and the differences between the short run and long run shut down decision of a firm. 2. Short run versus long run competitive equilibrium in an economy with production Theory Market equilibrium exists when the total amount the firms wish to supply is equal to the total amount the consumers wish to demand. In a diagram‚ the equilibrium price is the price at which the demand and supply curves cross. The
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TYPES OF COSTS MONETARY COSTS REAL COSTS OPPORTUNITY COSTS ECONOMIC COSTS ACCOUNTING COSTS INCREMENTAL COSTS SUNK COSTS FUTURE COSTS PRIVATE‚ EXTERNAL AND SOCIAL COSTS FIXED / SUPPLEMENTARY / OVERHEAD COSTS VARIABLE / PRIME COSTS REPLACEMENT COSTS PRODUCTION COSTS SELLING COSTS CONTROLLABLE COSTS DIRECT COSTS INDIRECT COSTS SHORT RUN COSTS CURVES LONG RUN COSTS CURVES OBJECTIVES To understand the meaning of cost. To discuss different types of costs. To describe in detail the short run and long run
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The budgeted profit statement for this month‚ which has been prepared using marginal costing principles‚ is as follows (a) Prepare in full a budgeted profit statement for this month using absorption costing principles. Assume that fixed production overhead costs are absorbed using the normal level of activity. (b) Prepare a statement that reconciles the net profit calculated in (a) with the net profit using marginal costing. RM(‘000)
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for more than two decades‚ used marginal productmarginal cost concepts to generate and dispatch electric power in a more efficient‚ lowercost manner. Southern Company‚ the nation’s third largest utility‚ refers to its load dispatching method as the “Early Bird” system. Southern’s Early Bird is designed to provide automatic‚ computerized control of all the company’s power production and transmission facilities. The Early Bird continuously calculates the marginal cost of delivering additional
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I. Identify and classify different types of cost incurred in Foxwood Company with an appropriate cost classification There are many concepts of cost in an organization. Costs also are used in different business applications‚ such as financial accounting‚ cost accounting‚ budgeting‚ capital budgeting‚ and valuation. Consequently‚ there are different ways of categorizing costs according to their relationship to output as well as according to the context in which they are used. Following this summary
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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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