a firm are when there a large number of small firms to compete with. Each firm sells the same product and the consumer has the ability to go in and out of each firm and they know the price of each good. A monopoly is a single seller of a good or service. They have the ability to set their own price of their good. It could be a diamond seller or a company that had sole ownership of a particular space in the airport. No other firm can come in and take over or take ownership of that good that the single
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Assignment: Maximizing Profits in Market Structures Paper XECO/212 University of Phoenix The structure of a market is defined by the number of firms in the market‚ the existence or otherwise of barriers to entry of new firms‚ and the interdependence among firms in determining pricing and output to maximize profits. This paper covers the following: the advantages and limitation of supply and demand‚ the characteristics of each market structure‚ the barriers to entry and how
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Theories of Profit There are various theories of profit‚ given by several economists‚ which are as follows: 1. Walker’s Theory of Profit as Rent of Ability This theory is pounded by F.A. Walker. According to Walker‚ “Profit is the rent of exceptional abilities that an entrepreneur may possess over others”. Rent is the difference between the yields of the least and the most efficient entrepreneurs. In formulating this theory‚ Walker assumed a state of perfect completion in which all firms are
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A01- Profit and Loss A profit and loss account is something businesses use to show them their revenue‚ costs and profits for that certain year‚ therefore showing the total amount of profit that the business has made that year‚ it is extremely important for the business‚ in particular for the accounts department who will refer to the profit and loss account a lot. This is because it clearly lays out what the business has spent‚ and what the business has brought in‚ it is easy for the business
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the diamond as big as the ritz - That was all. The wind died along the tall grasses of the valley. The dawn and the day resumed their place in a time‚ and the risen sun sent hot waves of yellow mist that made its path bright before it. The leaves laughed in the sun‚ and their laughter shook the trees until each bough was like a girl’s school in fairyland. God had refused to accept the bribe. For another moment John watched the triumph of the day metaphor. Then‚ turning he saw a flutter of brown
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Is Profit Maximisation always the major objective of a firm? The production of goods and services in our economy today takes place within organisations‚ whether in the centrally planned economy or free market economy. Any firm within these societies all have the same tendencies to acquire a successful business. Attaining this succession through mission statements‚ goals and objectives is simultaneous through all businesses. Changes in these objectives can have forcible effects on the decisions
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amounts which are set aside out of the profits for a specific purpose e.g. provisions for bad debts‚ doubtful debts or depreciation‚ etc. These provisions are made in view of some expected events. Any expected loss in the future relating to the current accounting period must be charged (i.e. debited) to the profit and loss account of the current period. Similarly‚ any expected gain in the future relating to the current year must be credited to the profit and loss account of the current year. N
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CHAPTER ONE PRINCIPLES OF PERSONNEL MANAGEMENT HUMAN RESOURCE DEPARTMENT AND ITS BASIC FUNCTIONS For any organization‚ staff or men power is the most valuable asset.. In the modern age where computers and information technology have brought revolutionary changes in the progress and performance‚ human resource factor’s importance has become imperative. Many years ago large organizations had no separate department for staff matters and Personnel & Admin Department was doing the job. But recently
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ECON 600 Lecture 3: Profit Maximization I. The Concept of Profit Maximization Profit is defined as total revenue minus total cost. Π = TR – TC (We use Π to stand for profit because we use P for something else: price.) Total revenue simply means the total amount of money that the firm receives from sales of its product or other sources. Total cost means the cost of all factors of production. But – and this is crucial – we have to think in terms of opportunity cost‚ not just explicit
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Supply Chain Management as an enabler of Service Delivery in Local Government 1.1 INTRODUCTION Post-apartheid South Africa faces a major challenge in ensuring that local government‚ as the third tier of government closest to the people‚ provides optimal service delivery to the people of different culture‚ race and sex. The government is intent to modernize the management of public sector‚ to make it more people-friendly and sensitive to meeting the needs of the communities it serves. The provision
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