Course Project Part 1 GM545 Business Econcomics (Fall Session A 2010) November 9, 2010 Ethical Issues in Business Ethics is an everyday occurrence in the corporate world as well as one's personal life. Business ethics is the same as normal ethics. In both cases, ethics is knowing what is right or wrong, and/or learning what is right or wrong in the environment in which one is involved. An ethical issue may not have a concrete answer; therefore a person's decision may depend on that person's
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total revenue minus the total costs is the method to calculate a firm’s profit. However, the company also has to consider how the sales price will affect the demand. The simulation game shows that when the price is set too high, the demand will be low, vice versa. When the company set the price within the average total cost curve and the demand curve, the company can expect profit and the company can expect the profit is maximized where marginal cost equal marginal revenue. In addition, the company’s
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again that labor is the variable input and capital is the fixed input. Specifically, assume that the firm owns a piece of equipment having a 500-bhp rating. A. Complete the following table: [pic] B. Plot the (i) total product, (ii) marginal product, and (iii) average product functions C. [pic] D. Determine the boundaries of the three stages of production. Stage 1 0-5 Increasing rate in TPx Stage 2 5-9 decreasing rate in TPx Stage 3 9-11 negative rate in
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a. Complete the following table: LABOR INPUT L (NO. OF WORKERS) | TOTAL PRODUCT TPL (= Q) | MARGINAL PRODUCT MPL | AVERAGE PRODUCT APL | 1 | 3 | - | 3 | 2 | 6 | 3 | 2 | 3 | 16 | 10 | 5.33 | 4 | 29 | 13 | 7.25 | 5 | 43 | 14 | 8.6 | 6 | 55 | 12 | 9.16 | 7 | 58 | 3 | 8.28 | 8 | 60 | 2 | 7.5 | 9 | 59 | -1 | 6.5 | 10 | 56 | -3 | 5.6 | b. Plot the (i) total product, (ii) marginal product, and (iii) average product functions. c. Determine the boundaries of the three
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C=Q Total Revenue = P x Q = (1100 -2Q) x Q = 1100Q – 2QQ Marginal Revenue = dTR/dQ = 1100 – 4Q Marginal Cost = dC/dQ = 1 MR = MC 1100 – 4Q = 1 Q = 274.75 P = 550.5 7b. MC=1 MR = 550.5 Markup = (P – MC)/P = 0.9982 = 99.82% 7c. Profit = Marginal Profit x Q = 549 x 274.75 = 150995.125
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creation activities to the fullest potential. Quasar has emerged as the only player in the market for the unique all optical notebook, the Quasar. Within this monopolist market structure, maximizing profit tends to occur at the point where marginal cost equals marginal revenue based on the result shown by toggling the demand curve. In the initial scenario, it was presented that Quasar had the patent rights on all-optical technology for three years from the launch year leaving the company faced with the
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which covers all medical expenses and part of lost wages associated with injuries, cost employers $63.9 billion in 2001 (Williams, Reno, and Burton 2003). The indirect costs of accidents—lost wages, damage to equipment, and training and rehabilitation expenses—were several times this amount. Human resource management (HRM) is usually viewed as an auxiliary function in a firm, contributing nothing to that firm’s output—a cost tolerated because payroll, benefits, and certain types of human resource activity
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model of perfect competition, all firms are price-takers since they treat price (P) as a market-determined constant. Assume that P = 12. A firm's total revenue (TR) function is TR(Q) = P ( Q, where Q is the quantity of output of the firm. The total cost (TC) function of the firm is TC(Q) = Q3 - 4.5Q2 + 18Q - 7. a. Determine the firm's profit (() function. (Hint: ( = TR - TC) b. What quantity of output (Q) the firm should produce in order to maximize profits? c. Confirm that this quantity
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that five-dollar breakfast is waking up earlier for work, waiting in line at the restaurant and if there are other 100 people that think the same we will be waiting for a long time. 2. The cost of something is what you give up to get - “Because people face trade-offs, making decisions requires comparing the cost and benefits of alternative courses of action.” (2007, Chapter 1) For example, if a collage athlete’s dream is to become a pro in his or her sport they need to perform at a high level, so
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Question 1 The primary objective of a for-profit firm is to ___________. Selected Answer: Correct Answer: 5 out of 5 points maximize shareholder value maximize shareholder value Question 2 5 out of 5 points The flat-screen plasma TVs are selling extremely well. The originators of this technology are earning higher profits. What theory of profit best reflects the performance of the plasma screen makers? Selected Answer: Correct Answer: innovation theory of profit innovation theory
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