do you think that recent changes in the UK economy will have inevitably damaged the long-term profits of businesses that operate in this country? (40 marks) The UK had recently emerged from the recession 2007-2009‚ the economy is now recovering. During the recession‚ many businesses had struggled to survive. The strategies that businesses had taken during recession may affect their long-term profits. For example‚ as people spend less during the recession‚ businesses try to reduce their costs and
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long-term plans‚ probably over the next three to five years. Businesses will probably want to focus on one or more of the following areas this includes: • Profit and Profit maximisation are privately owned businesses that aim to make profit‚ when some want to achieve maximum profit. • Survival is when a business is having a hard time making profit they will try and survive till a better time to come. • Break-even is covering the costs of making the product and running the business‚ but no more. • Growth
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Financial Environments Financial Environments The discussion of profit and not-for- profit organizations has been analyzed and discussed in essays and research papers for years. When you include government funded organizations into the mix this tends to bring about some very interesting discussions. There are similarities and differences among the three different environments. Some key identifiers that shed light into the similarities and differences include where the organizations get
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is possible for a perfectly competitive firm to make abnormal (economic) profits or economic losses in the short run based on the assumption that goal of the firm is to maximize profits. Describe abnormal profit (economic profit ) as the case where total revenue exceeds economic cost. Explain‚ using a diagram‚ why‚ in the long run‚ a perfectly competitive firm will make normal profits. Explain the concept of normal profit as the amount of revenue needed to cover all economic costs of production
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differentiation‚ d) the level on entry and exit barriers. Normal and super-normal profits Economic profits are revenues – costs but in assessing costs the Economist also takes into account returns to investors. Normal economic profits are equal to the rate of return from the economy e.g. a bank account (taking into account risk of investment etc). Supernormal profits are above normal economic profits. In many economics questions you must consider the impacts of various factors e.g
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cost structure given in the case‚ Selling costs‚ Sales and Administration costs‚ Depreciation and other manufacturing overheads have been considered to be variable costs‚ i.e. per unit costs and hence have been accounted for in the calculation of profit and loss. As such‚ this methodology is resulting in a loss of $900 for every Sunday that the plant is operated. Therefore‚ if the present cost structure is used no production should be done on Sunday since it is clearly unprofitable. However‚ on
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Objectives of firms 1. Profit Maximisation In neo-classical economics it is assumed that the interest of owners or shareholders are the most important. Just as consumers attempt to maximise utility‚ shareholders main motivation is to maximise their gain firm the company. Therefore‚ one of the main objectives of firms is to maximise profit. Profit is the reward for the risk-bearing function of the entrepreneur. The firm is in equilibrium‚ and is maximising profit‚ when it is producing
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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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maximize utilization‚ throughput time and the nightly profit using different batching‚ bar sizing‚ hours of operation‚ as well as advertising strategies. The first five challenges are individual challenges where only one to three factors can be changed to gain affect nightly profit. The sixth and final challenge is to design the best strategy possible. In doing so‚ you use factors from the previous challenges in order to maximize the overall profit. The first challenge is the most straightforward as
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utilization‚ throughput time‚ making use of batching‚ designing of the bar and catering to the optimum number of customers. By varying the hours of operation and carefully balancing operation costs‚ they can meet customers’ demands and yet maximize overall profit. Batching The first decision to see if the restaurant is served with no-batching policy‚ will it be a better strategy. Running tests against both scenarios (batch and no-batch)‚ it shows that Benihana is already doing well by staying with the batch
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