Name: Thuy Anh Nguyen November 6‚2012 1. Conditions for profit maximization are: a) Difference between total revenue (TR) and total cost (TC) is maximized; b) Marginal revenue (MR) should be equal to marginal cost (MC) Explanations: If we assume that the company is facing a downward – sloping curve and it produces just one single product a) Profit = TR – TC. Profit will increase if TR increases and TC decreases. If company wants profit maximization‚ it should be TR maximization and TC minimization
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Hiring for profit In the society we live in today‚ where the outside beauty is more important than the inner beauty. Businesses realized how to use that beauty to make a great amount of benefit become quite successful. Attractive and trendy employees will help draw more customers to a specific store and will generate more profit for that company. This is a commonly practiced hiring technique that is not against the law. It might be seen as discrimination in only hiring only certain type of
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Profit and loss accounts‚ balance sheets Profit and loss accounts‚ balance sheets Two of the most important financial statements for a business are the Profit and Loss Account‚ and the Balance Sheet. The Profit and Loss Account shows the profit or loss of a business over a given period of time e.g. 3 months‚ 1 year‚ etc. In contrast‚ the Balance Sheet is like a photograph taken at an instant in time giving a picture of what the business owns and what the business owes at that moment in time
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INCREAS PROFITABILITY OF BRANCH profit center Definition A business unit or department which is treated as a distinct entity enabling revenues and expenses to be determined so that profitability can be measured. Distinctly identifiable department or unit that contributes to the overall financial results of a firm. Where adequate cost accounting systems are in place‚ profit centers are given responsibility to target certain percentages of the total revenue and are given adequate authority
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do. There are usually a small amount of large firms and they usually control the market. Competitive firms will use the firms marginal cost to produce the price. The price of the good must be lower than the cost to produce it. To maximize the profits is when the price is equal to the marginal cost of production. The competitive firm must be producing at the point where price equals marginal cost. In monopoly firms they cannot just set a high price for their good because the customers will completely
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if firm 1 builds 2 plants and firm 2 builds 4 plants‚ the market price will be 9 − (2 + 4) = 3 per unit. At this price firm 1 will make a profit of 2 × 3 − 2 × 3.5 = −1 while firm 2 will make a profit of 4×3−4×3.5 = −2. Assume‚ no firm will build more than 4 plants. Cost (Q) = 3.5 * Q Price = 9 -(Q1+Q2) 1. Set up a 4-by-4 table that records the profits of each firm for each possible choice of the number of plants to build. Then‚ use your table to answer the questions below. Price Firm
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WHAT ARE COSTS AND PROFITS? HUNGRY HELEN’S COOKIE FACTORY • Helen‚ the owner of the cookie factory‚ buys flour‚ sugar‚ flavorings‚ and other cookie ingredients. • She also buys the mixers and the ovens and hires workers to run the equipment. • She then sells the resulting cookies to consumers. 2 TOTAL REVENUE‚ TOTAL COST‚ AND PROFIT • The amount that Helen receives for the sale of its output (cookies) is its total revenue. • The amount that the firm pays to buy inputs (flour‚ sugar‚ workers
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SWOT Analysis Strength Strengths are one of the internal factor lead the organization to the success pathway and the business which allow you to operate more effectively than your competitors. For example‚ strength could be your specialist technical knowledge. As Nestle is a well-known brand in the world‚ so this is good for NESCAFÉ to make any further development and it is believed that NESCAFÉ is the major player in coffee market and it has a strong brand names because of associating
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school and you see that there’s not much requirements to get into these schools as long as you have money for tuition. Those are what you call for-profit schools. Now the question is are these schools actually good for you? Can they help you in the long run or just give you classes and you’re on your own after you get the degree. I feel that for-profit schools should not be federally regulated because these colleges provide opportunities for students ignored and rejected by traditional colleges‚ they
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2) Explain why a profit maximizing firm produces the output that equates marginal revenues to marginal costs (MR=MC). In a perfectly competitive market‚ producers are price-takers and consumers are price-takers. There are many producers‚ none having a large market share and the industry produces a standardized product‚ also free entry and exit of the industry. They produce using the optimal output rule: produce where marginal revenue equals marginal cost as Smith (1904) demonstrated. Figure
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