machinary ‚ building‚ and equipments. So there are two main catagories of selection of project‚ 1-Financial model 2-Non- financila model FINANCIAL METHODS: In financial maethod we determine the capital budget of the project. In capital budgeting following techniques are used‚ 1-Pay back period 2-Net present value 3-Internal rate of return 4-Profitability index These method are explained below‚ 1-PAY BACK PERIOD: Payback period is the exect length of time needed
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CHAPTER 9 Three conditions for a market to be perfectly competitive? Many buyers and sellers‚ with all firms selling identical products‚ and no barriers to new firms entering the market. In perfectly competitive markets‚ prices are determined by The interaction of market demand and supply because firms and consumers are price takers. Price taker Buyer or seller that is unable to affect the market price. A buyer or seller that takes the market price as given When are firms likely to be
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and exit Short Run Firm has some market power and faces downward sloping demand curve Price exceeds marginal cost When P>AC firms earn positive economic profits Long Run Positive economic profits in short run attracts new firms Firm’s market share falls and demand curve shifts down P=AC firms earn 0 economic profit P>MC and 0 economic profits deadweight loss Market in which only a few firms compete with one another‚ and entry by new firms is impeded Oligopoly Environment Few
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Each problem is worth 1 point. Please make sure your first sheet is the answer sheet. This is an individual assignment. 1. _a____ 2. _a____ 3. _b____ 4. c_____ 5 .b _____ 6. d_____ 7.d _____ 8. _c____ 9. d_____ 10. _c____ 11. a_____ 12. _a____ 13. d_____ 14. f_____ 15. c_____ 16. b_____ 17. _f____ 18. _b____ 19. c_____ 20. e_____ 21. _a____ 22. a_____ 23. b_____ 24.c _____ 25.b _____ 26. b_____ 27. b_____ 28d. _____ 29. _d____ 30. _f____ 1. A city’s General
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1. Speed company a. Single markup Manufacturing unit MC=$200‚ selling and distribution cost Sales unit MC=$150 End user’s consumer demand P=1000-0.01Q. P is the price for each printer and Q is the quantity demanded in the marketplace. The marginal revenue corresponding to the demand is MR=1000-0.02Q. Total marginal cost MC=$200+$150=$350. The firm maximizes profit when MR=MC. Thus‚ 1000-0.02Q=350. Q=32500. Substituting Q into the demand equation we find the profit maximizing price‚ P
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PAPER ON EFFECTS OF MARKET STRUCTURE OF AN INDUSTRY ON THE CONDUCT AND PERFORMANCE OF A FIRM This paper provides an overview of telecommunications industry in Kenya and discusses how structure of the industry can affect the conduct of a firm within an industry and also explores how market structure and conduct of the firm affect the firm’s performance. It also offers some ideas regarding the future of the telecommunications sector in Kenya. Introduction Kenya ’s earliest telecommunications connections
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achievement of a nat ion. In t his way‚ t he Nat ional Income is t he aggregat e of t he individual incomes. (Prof. Gardner Ackley) Nat ional Income is t he basic concept of economic‚ which refers t o t he market value of t he goods and services produced during a part icular year. (Prof. Richard Lipsy) CONCEPTS OF NATIONAL INCOme ----1.GROSS DOMESTIC PRODUct Total value of output (goods and services) produced by the factors of production located within the country’s boundary in a year GDP = GNP – Net
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diet in which liquids play the vital role. Availability of soft drink in our country is numerous. Everyday new types of soft drinks are being launched. The reasons behind this popularity for this soft drink show that demand is very higher in our country. Throughout the year‚ consumption of the soft drinks goes on. Kids to elder people everybody like soft drink; specially kids and young generation. The competition among the soft drink companies is very high. They are fighting all-time to attract
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Economics and Managerial Decision Making Economics (text definition) The study of the behavior of human beings in producing‚ distributing and consuming material goods and services in a world of scarce resources Economics (Moss’ favorite definition) Economics is concerned with how people to allocate scarce resources among alternative uses. Scarcity Scarce means that there is not enough of the resource available to satisfy all the desires for it without imposing a system of rationing. Resource
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A COMPARATIVE STUDY ON CONSUMPTION PATTERNS OF SOFT DRINKS AND FRUIT JUICES EXECUTIVE SUMMARY Soft Drinks were common preference among all the individuals before juices were being introduced‚ With the changing lifestyle and income levels‚ people are shifting their consumption patterns and have therefore become more health conscious thus leading to increase in demand of juices. Market Research is based on some underlying parameters like: • Changing consumption pattern • Health factor • Status
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