managers and whether they should join the joint venture or not. Profit maximisation Profit maximisation is the process by which a firm determines the price and output level that returns the greatest profit. There are several approaches to this problem. The total revenue - total cost method relies on the fact that profit equals revenue minus cost‚ and the marginal revenue - marginal cost method is based on the fact that total profit in a perfectly competitive market reaches its maximum point where
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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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Entrepreneurs are born not made. “You were born to win‚ but to be a winner‚ you must plan to win‚ prepare to win‚ and expect to win.” (Zig ziglar‚ Author and speaker). One may be born with the mental capacity to innovate‚ think big and achieve great success‚ but success requires more than merely great ideas. Successful Entrepreneurs are people who are able to think critically‚ manage problem solving‚ attain people skills and most importantly possess the passion to manifest their dreams
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additional gaming revenues. Terrence Wei‚ the new property president‚ feels that his department managers appear to be in conflict with each other. The managers of each department have expressed concerns when it comes to running their department under the profit center approach. Overall‚ complementary costs and allocated overhead included in the direct costs pose more of a problem in determining the amounts to allocate. More specifically‚ the hotel manager complained about capacity constraints. It is difficult
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the stock’s price movement or the overall state of the market. Profit Margin Anal ysis A company’s stock price‚ in large part‚ is driven by the company’s ability to generate earnings. Therefore‚ it is useful for investors to analyze the profitability of a company before investing in it. One way to do this is by calculating and tracking various profit margins‚ which reflect how efficiently a company uses its resources. Profit margins are expressed as a ratio‚ specifically “earnings” as a percentage
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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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Both Childline International and Kansas State Collegian are based upon the subject of Social Networking. Although they have that in common‚ they are both worlds apart from being the same‚ as their purposes are completely different. The format (type of text) for Childline is an online website‚ which is run by volunteers from all over the country (GB). The target audience for Childline is young children and the parents’ of those vulnerable young children. The age range for the Children is around
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Oxford Dictionary‚ an Innovator is a person who introduces new methods‚ ideas‚ or product. Now‚ lets get to whom an Entrepreneur is; he/she is a person who sets up a business or businesses‚ taking on financial risks in the hope of profit. Having established the definition of the two roles in question let us assume‚ for the sake of argument‚ that the innovator has no prior experience‚ what so ever‚ in any activity even remotely related to management. The fundamental qualities essential to succeed are
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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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GMO WHITE PAPER March 2012 What Goes Up Must Come Down! James Montier A Little Detour into My Murky Past Nearly a quarter of a century ago‚ I was a young‚ naïve‚ and foolish believer in an economic concept known as rational expectations – an elegant‚ mathematically beautiful theory with no practical use. In Star Wars parlance‚ I had effectively been seduced by the dark side. Thankfully‚ several of my university lecturers were determined to save me from this terrible fate. They insisted on teaching
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