OVERVIEW This is an excellent short case to introduce the managerial accounting issues related to the "joint cost" problem. Classic 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
Premium Marginal cost Costs Cost
CHAPTER 8 ECONOMICS OF STRATEGY: CREATING AND CAPTURING VALUE CHAPTER SUMMARY This chapter is the first of two chapters on strategy. It concentrates on the basic ways firms can create and capture value. Chapter 9 uses game theory to study strategic interactions among a small number of identifiable rival firms. Chapter 8 presents a framework for discussing how firms create value. It also discusses the conditions under which a firm can capture value (either by having market power or‚ in certain
Premium Microeconomics Economics Cost
perception‚ indices of home Internet use (elements of the techno-subsystem) were better predictors of children’s cognitive development than were family socioeconomic characteristics (elements of the microsystem). Tab le 4 . Stepwise Regression Analysis: Home Internet Use Predicting Child Cognitive Development Cognitive Score Predictor/s Beta Weight t value R 2 (adj)
Premium Internet Sociology Psychology
1.0 Introduction: The spectrum of competition ranges from perfectly competitive markets where there are many sellers who are price takers to a pure monopoly where one single supplier dominates an industry and sets price. We start our analysis of market structures by looking at perfect competition. Firms operate within their market‚ which consists of: Supply side: all of the firms producing similar products Demand side: all buyers willing to purchase the products Markets differ; the
Premium Economics Microeconomics Perfect competition
INDEX Chapter No. NAMES Page No. Microeconomics 1 2 3 4 Basic concepts Demand and supply Consumer’s Behaviour Analysis Perfect and Imperfect Competition Macroeconomics 5 6 7 8 National income analysis Consumption‚ Saving and Investment Determination of National Income Monetary and Fiscal Policies Economic Systems 9 10 Capitalism‚ Socialism and Mixed Economic System Islamic Economic System 74 81 33 39 62 69 2 7 15 21 1 ECONOMICS: It is a social science (social science is a science‚ which studies
Premium Supply and demand Economics Microeconomics
its relationship to certain microeconomic principles. Thesis: While Starbucks has been an industry leader in the specialty coffee market‚ rapid overexpansion and current economic conditions have caused it to lose its market dominance. Is the company strong enough to recover? I. The origins of Starbucks A. 1971 Beginnings B. Starbucks goes public in 1992 C. Rapid expansion from mid-1990s to mid-2000s II. Starbucks provides microeconomic principles A. Supply and
Premium Supply and demand Coffee Starbucks
Summer2011-Microeconomics-Exam Two Practice 1. To calculate the total utility of consuming N products: A. add the additional satisfaction of consuming each product up to N and multiply by its price. B. add the total satisfactions of consuming each product up to N. C. multiply the additional satisfaction from consuming the Nth product by its price. D. multiply total satisfaction from consuming N products by N. 2. Suppose that the following table lists the utility that Steve receives from
Premium Costs Economics Supply and demand
In microeconomic theory‚ the opportunity cost of a choice is the value of the best alternative forgone‚ in a situation in which a choice needs to be made between several mutually exclusive alternatives given limited resources. Assuming the best choice is made‚ it is the "cost" incurred by not enjoying the benefit that would be had by taking the second best choice available.[1] The New Oxford American Dictionary defines it as "the loss of potential gain from other alternatives when one alternative
Premium Economics Opportunity cost Microeconomics
[pic] Swinburne University of Technology (Sarawak Campus) HBE613 ECONOMICS Higher Education Division Microeconomics Test Term 1‚ 2013 12.5% of Total Unit Marks (to be marked out of 20) Time Allowed: 1 hour Name: ______________________________________ Student ID: ______________________________________ Swinburne University of Technology‚ Sarawak Campus Short Answer Questions There are 4 questions in this section. Each question is worth
Premium Economics Supply and demand Microeconomics
Analyzing the Monopolistic Competition of the Retail Industry Understanding the Terms Symbol = a code comprised of letters used as a unique identification of the stock 52 week High = the highest price reached during the last 52 weeks 52 week Low = the lowest price reached during the last 52 weeks Dividend = taxable payment declared by a company’s board of directors & given to its shareholders out of the company’s current/retained earnings Dividend Yield = yield
Premium Economics Marketing Competition