peaches. 4.4aii. Case 1: If I do not discover the rotten peaches‚ the quantity demanded is 100. Case 2: If I discover the rotten peaches‚ the quantity demanded is 90. It is the fact that the total costs in these two cases remain the same so revenue is the main point to determine which cases is better in terms of profitability. Overall‚ the total profit in case 2 is greater than that in case 1 so it is good to discover that 10 of peaches are rotten. 4.4bi The short-run production means there
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decision. It is the problem revenue from alternative sacrificed. * Opportunity cost may be defined as the revenue foregone or opportunity lost by not using the resources in second best alternative use. * Opportunity cost requires measurement of sacrifice. It measures the sacrifice made for making (taking) a decision. * Incremental principle The incremental principle may be stated as follows: A decision is clearly a profitable one if :- * It increases revenue more than costs. *
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Chapter 2: DQ7 p.55 PCCW provides broadband Internet access in Hong Kong under the brand name‚ Netvigator. Table 1 lists several of the plans offered in April 2004. Table 1: Netvigator Broadband Internet Access Plans | Plan | Monthly Subscription | Included Hours | Charge per additional hour | Bandwidth | Basic | HK$198 | 20 | HK$2 | Up to 1.5 Mbps | 3M Single User Plan | HK$298 | 100 | HK$2 | Up to 3.0 Mbps | 6M Single User Plan | HK$398 | 200 | HK$2 | Up to 6.0 Mbps | a.Wong subscribes
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1. Suppose your college institutes a new policy requiring you to pay for a permit to park your car in a campus parking lot. a. The cost of the parking permit is not part of the opportunity cost of attending college if you would not have to pay for parking otherwise. b. The cost of the parking permit is part of the opportunity cost of attending college if you would not have to pay for parking otherwise. c. Only half of the cost of the parking permit is part of the opportunity cost of attending
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Comparable sales grew 5.6%. Cash by operations increased $808 million to $7.2 billion. Return to shareholders $6.0 billion (McDonald’s.com‚ 2012). Elasticity of demand and the market structure for the company’s good or service. * Profit-maximizing quantity is figured by determining the elasticity of the product. * By dividing the change in quantity sold by the corresponding change in price‚ you get a coefficient that tells you how elastic or inelastic your product is – with coefficients
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monopolistically competitive market. The graph below shows its demand curve (labeled Demand){ marginal revenue curve (labeled MR){ marginal cost curve (labeled MC)‚ and average total cost curve (labeled ATC). Assume that the company is operating in the short run. DOLLARS (Dollars per bagell Me $7.00 ~-----/ ATC $5.50 $5.00 $3.80 $2.00 Demand MR 480 690 840 QUANTITY [Bagels per dayl The profit-maximizing level of output is 480 ’" bagels per day at a price of $5.00 ’" each. Close Explanation:
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solution within the boundaries. One big concept that was present in determining which quantities were “optimal” was demand elasticity. Trends were found‚ and the conclusion that a elasticity with an absolute value of 1‚ represented an overall revenue maximizing point was discovered. Unfortunately those specific combinations were out of reach due to the fact that they went past the weight capacity of the ships( 24000 tons). Going back to the problem with the pricing strategy‚ its biggest problem was
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Profit in business is a financial gain earned when marginal revenue exceeds marginal cost to produce a particular product or provide a service. Basically profit is the amount of money left after a business has paid all cost associated with doing business for a certain period of time from the total revenue taken in during that same period of time. All for profit business want to maximize their profits. Without making a profit a business cannot stay open without additional investment by the business
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Bruce Palmer had worked for Moss and McAdams (M&M) for six years and was just promoted to account manager. His first assignment was to lead an audit of Johnsonville Trucks. He was quite pleased with the five accountants who had been assigned to his team‚ especially Zeke Olds. Olds was an Army vet who returned to school to get a double major in accounting and computer sciences. He was on top of the latest developments in financial information systems and had a reputation for coming up with innovative
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CHAPTER 12 Microeconomics The Demand for Resources Topic Question numbers ___________________________________________________________________________________________________ 1. Derived demand 1-8 2. Resource demand curve; optimal hiring 9-59 3. Determinants of resource demand 60-97 4. Elasticity of resource demand 98-114 5. Optimal combination of resources 115-145 6. Marginal productivity theory of income distribution 146-149 Consider This 150-151 Last Word 152-154 True-False
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