Business Economics CMSE11092 Session 2. Theory of Costs Augusto Voltes-Dorta augusto.voltes-dorta@ed.ac.uk Room GF8 Production and Costs • For a manager, it is crucial to know the relationship between cost and output. • Different time-horizons are considered. SHORT RUN • Some inputs are fixed (typically capital) • Fixed vs. variable costs • Economies of Capacity • Operational and tactical decisions LONG RUN • All inputs are variable • Economies of Scale • Economies of Scope • Strategic
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salary paid to himself, $40,000; rent, $0; other expenses, $25,000. Find the economic cost associated with Joe's computer software business. | | | A. $83,000 | | | | B. $99,000 | | | | C. $81,000 | | | | D. $65,000 | | Reset Selection | Question 2 of 5 | 10.0 Points | Imagine that the total cost function is described by C(q)=64+(q^2)-12q. The marginal cost (MC) and average cost (AC) are | | | A. MC= 2q-12 AC= (64/q) + q - 12 | | | | B. MC= 64 AC=
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in other photos. For example, I was not planning to go to San Diego, California because I have never been on a plane, but looking at pictures and seeing how beautiful it probably is makes me want to go there. 3. In my opinion, Getty Images’ marginal cost isn’t sustainable because it doesn’t seem like people would buy one item in a large quantity. Getty Images’ prices are sustainable because if not then the business would go nowhere. Its key to continued success is being able to sell and at the
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eer University of Phoenix Material-Business Proposal Feedback Checklist |Important information |Included? |Comments | |Identification of market structure |X |You did a good job explaining that the shampoo market | | |Yes No |is a Monopolistic market.
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Market Analysis Market Analysis In today's market, there is a lot of competition for any firm or business. I will be present you with the market analysis of your company based on the data you have provided. My over viewed is based from your strategic planning, marketing goals, and surveys. The service provided me with strengths and weaknesses of your company. My job is to make recommendations on how your company is organized and we will change or improve your current marketing structure
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Discuss the problem that are likely to be faced in determining the prices to be charged for the seats? In determining the prices to be charged for the seats, problems of allocative inefficiency might arise, unfairness in the seating, administrative cost of renting the location and paying the salaries to the stuffs involved, identifying the seats from the expensive ones to the cheapest one in a fixed topography of the area, problem of resale as well. Thus, this essays plans to discuss the problems
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use their television screen as their monitor will be proposed. Statements about market structure and the elasticity of demand for the product will be covered. Hypothetical data, based on similar real world products to estimate fixed and variable costs will be presented. According to Wang and Zheng (2012), the relationship between the market structure’s distinctions and production structure’s parameters can have a significant effect on an organization’s profit. Correctly identifying the market
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will be sold at $ 10 ? b. At what price would 2,000 units be sold ? 0 units ? 1,500? c. Write equations for total revenue and marginal revenue (in term of Q). d. What will be the total revenue at a price of $70? What will be the marginal revenue ? e. What is the point elasticity at price of $70 ? f. If price were to decrease to $60, what would total revenue, marginal revenue and point elasticity be now? g. At what price would elasticity be unitary? a. when P = $10, Q = 2000 – 20p. Q =
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students pay and q (quantity) is how many students are enrolled yearly. If the total annual costs are held constant, a raise in the amount of tuition paid by every student will result in an increase, in total revenue. However, raising the tuition may not result in an increase because there may be a decrease in students enrolling which would result in a decrease in revenue. In cases where the total annual costs are not constant, increase in tuition will not necessarily result in a rise in the total revenue
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existing goods and services for Will Bury’s new product. In this paper the subject to discuss is profit-maximizing and increasing revenue. Marginal cost, marginal revenue, credit markets, and the unemployment rate are briefly covered. Additional sections will discuss pricing and non-pricing strategy, barriers to entry, product differentiation, and minimizing cost. Business Proposal Profit-Maximizing and Increasing Revenue Profit-maximizing quantity is figured by determining if the product
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