Opportunity: The cell phone industry has become increasingly larger within the last three years as a result of more affordable cellular phones as well as lower service costs. Companies are competing in an advance technology and communication sector in which success attracts customers to buy their products and services. The market is very competitive because they offer the same products and services, but has different physical attributes to the phones and different costs, which buyers have choices
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Several years ago, I was told that my job may be eliminated due to restructuring within our organization. I immediately began looking for another role within the company and outside the company. I looked for three months and finally found something that was comparable in salary but not in work environment. With my original job, I was working from home and my potential new job was working in an office environment. This change would be a disruption to our family routine of not having mom in the
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Q. How do you believe United Airlines should account for the program in its published financial statements? Explain and support your chosen method and why you rejected other approaches? They should account for the Frequent flier program based on the Incremental Cost Method in its financial statements. Excess capacity of around 64-67% throughout the years 1986-1990. The load factor is equal to the breakeven load factor. This results in only an incremental cost incurred of serving a passenger
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‘The Price Mechanism Can Be Relied Upon To Provide Efficiency’ I will first discuss this in very simple terms concerning such matters as the law of supply and demand. I will then present the situations in which inefficient results are created and also areas in which Pareto efficiency is of particular significance. Generally, if the demand for a good increases its price will increase as supply becomes limited for consumers. This in turn acts as an incentive for producers to supply higher output
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SAMPLE FINAL EXAM FOR ECON200 FALL 2015 1. In the short run, product differentiation enables firms in monopolistically competitive markets to: A. standardize goods. B. produce a good for which there are no exact substitutes. C. act like perfectly competitive firms. D. collude. 2. Rick finds a great Internet deal on an all-inclusive vacation rental in the Tropics for $1200, and immediately places a $1000 nonrefundable deposit on it. He later learns that the dates he planned to go are right
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Economics and Global Business Applications EGT1 Task 1 July 17, 2014 For a company to determine if it is profitable there are various factors that need to be assessed. An organization must produce a product, tangible or intangible, to produce a profit. The product must be produced at a cost that is low enough so that when sold, the mark up of the item is enough to pay the cost of production and make a profit. To determine profit you would deduct the cost of production from the total revenue
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Business Proposal Paper Mark Bolding Economics/561 October 26, 2015 Seyed Baladi Introduction After twenty years in the casino gaming industry and after recently acquiring his MBA, casino player development executive Frank Hines has decided to take his expertise into the open market by starting a casino player development consulting firm specializing in the regional Native American casinos located in Oklahoma. Hines hopes to leverage his two decades worth of experience, his
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10. Solve the problem A business owner makes 1,000 items a day. Each day he or she contributes eight hours to produce those items. If hired, elsewhere he or she could have earned $250 an hour. The item sells for $15 each. Production does not stop during weekends. If the explicit costs total $150,000 for 30 days. a. Calculate the firm’s accounting profit for the month; Revenue equals 1000 items per day * $15/item*30days = $450,000.Explicit costs are given as $150,000. Therefore, accounting profit
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Economics * The study of how individuals and societies allocate their limited resources to try to satisfy their unlimited wants. * Sometimes people have unrealistic wants that a company cannot meet. * Scarcity= focus of economics (limited resources, unlimited wants) * Abstraction * Ignore many details to focus on the most important elements of a problem * The proper degree of abstraction depends on the objective of the analysis * Theory
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Supernormal profits are profits that exceed the level of normal profit, which is the minimum profit a firm must make to stay in business. In terms of perfect competition, which is when there is perfect knowledge in a market along with multiple other features, when a business gains information or makes innovative products that advances that perfect knowledge, it means that they make supernormal profits because they are the only firm with that knowledge. These advances could be anything from technological
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