ECO/365 Principles of Microeconomics
Team B
Weekly Reflection
University of Phoenix
Carol Szerszen

In my industry, there is always a concern for international competition for labor. According to Colander, “central determinant of a country’s competitiveness is the relative wage of labor in that country compared to the relative wage of labor in other countries “(Colander, 2010, p. 438). As companies move to cut costs, moving work overseas to employees that are willing to work for less money, in some cases significantly less money, can improve that company’s bottom line. As a telemarketing firm, our focus is on providing quality service to our clients, but our company has to demonstrate that we are cost effective to prevent that company from outsourcing to a foreign vendor. One of the things that I thought was interesting about this past week that accounting has a different measure of profit compared to what an economist’s measure of profit. When it comes to accounting and their ways of measuring profit which is total revenue minus total costs which will get you profit. Whereas in the economist’s way of getting profit which is explicit revenue and implicit revenue minus explicit cost and implicit cost which will get you the economist’s profit. After this weeks reading, I realize that the effect of changes in marginal revenues and costs on a firm’s profit-making potential is that the best possible performance of any company is to increase their earnings and revenue or increase a company’s worth. Since I work in finance, then the way to calculate a business total profit is determined by their total revenue less total cost or expenses. We are currently realigning things based on the economy and increase production in areas that are more profitable to the company rather than attempting to continue selling items