1 Chapter 4.1 Marginal Functions in Economics ___________ Cost: Suppose that C ( x ) describes the cost function for producing x number of a certain product. Then the ___________ cost is the derivative of the cost function‚ C ( x) ‚ and measures the rate of ________ of the cost function ______________ the number of units ______________. Note 1: The marginal cost for a particular value of x is the ___________ cost of one __________ unit of production. ___________ Revenue Function: R( x) px
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Murzakarimova Balzhan Management 343 Q1.6 Which concept—the business profit concept or the economic profit concept—provides the more appropriate basis for evaluating business operations? Why? Businesses i know are there to maximize profit and minimize cost.On this basis‚i think the business profit concept is the most appropriate basis for evaluating business operations because banks‚lenders or creditors will the creditworthiness of such business if loan or any other facility has been advanced
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Managerial Economics School of Distance Education Bharathiar University‚ Coimbatore - 641 046 Author: Atmanand Copyright © 2007‚ Bharathiar University All Rights Reserved Produced and Printed by EXCEL BOOKS PRIVATE LIMITED A-45‚ Naraina‚ Phase-I‚ New Delhi-110028 for SCHOOL OF DISTANCE EDUCATION Bharathiar University Coimbatore-641046 CONTENTS Page No. UNIT-I Lesson 1 Lesson 2 Lesson 3 Lesson 4 Lesson 5 Lesson 6 Lesson 7 Managerial Economics: Definition
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Discussion Questions for the Aluminum Case Group: 1. Conduct a S-C-P analysis for the Aluminum industry. Is primary aluminum production industry an attractive(profitable) industry? Why and why not. 2. Using information in the case and the data from the attached spreadsheet‚ construct the industry supply curve for primary aluminum. Please note the marginal costs are used to derive the supply curve and be careful as to what cost items can be counted as “marginal” costs. DO NOT use regressions
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Chapter 15: Decisions Under Risk and Uncertainty Answers to Applied Problems 1. a. At the maximax rule the firm should operate plants in US‚ Mexico‚ Canada b. At the maximin rule the firm should operate plants in US only c. The potential regret matrix is: OINC Passes OINC Fails OINC Stalls US only 10 million 0 2 million US and Mexico 5 million 3 million 2.5 million US‚ Mexico‚ Canada 0 5 million 0 And the maximum potential regrets are: US only 10 million US and Mexico
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Quiz 10 A pure monopolist is selling 6 units at a price of $12. If the marginal revenue of the seventh unit is $5‚ then: [pic] |[pic] |firm’s demand curve is perfectly elastic. | |[pic] |price of the seventh unit is $10. | |[pic] |price of the seventh unit is greater than $12.
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SUPPLY‚ DEMAND AND GOVERNMENT POLICIES When analyzing government policies‚ supply and demand are the first and most useful tools of analysis. Price controls such as‚ price ceiling‚ price floor and tax incidence mentioned in this chapter show how price controls affect economy. Price ceiling is a legal maximum on the price at which a good can be sold and price floor is a legal minimum on the price at which a good can be sold. Evaluating
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ASSIGNMENT 1 DIPECO03 Basic Economics Question 1 Flow of Goods and Services Flow of Cash EXAMPLES OF TRANSACTIONS ON MARKET FOR GOODS AND SERVICES Question 1(a) and 1(c) EXAMPLES OF TRANSACTIONS ON MARKET FOR FACTOR OF PRODUCTION Question 1(b) and 1(d) Question 2 Consider the market for minivans. For each of the events listed here‚ identify which of the determinants of demand or supply
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Economics Unit 2: How Markets Work Investigating Price Changes Portfolio Project Part 1: Chapter 6 Wall Street Journal Questions 1) Why are sports teams considering switching to a variable–pricing strategy for tickets? Sports teams are switching to a variable-pricing strategy for tickets so that they can get a higher profit on games with record attendance numbers. They feel the need to do so because the marginal costs‚ such as construction payment and players’ salaries‚ did not equal to the marginal
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In the ERPSim game‚ our team (Team G) encountered productivity problems‚ low company valuation‚ and low sales revenue. In fact‚ all of the challenges affected my role as a Sales Manager. Regardless of the problems‚ our objective is to efficiently deliver the products in response to the market demand. Our product mix is consisted of Blueberry‚ Mix Fruit‚ and Raisin Muesli‚ for we were concerned of raw material cost and market trend towards fruits. During the practice game‚ we observed that consumes
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