elastic good. An elastic good is more of a luxury, and fast-food is not a requirement to survive. * An elastic good, the price must be set at a reasonably low level to increase the revenue. * McDonalds can use the formula of marginal cost = marginal revenue to determine its pricing. Demand is elastic when it is easily affected by the raising or lowering in the price of a product or service. * When McDonalds raises its
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translation option as well. The purpose of this paper is to create a business proposal to improve the 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
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buying a house the economy is the first issue that one would take in to consideration. Due to the fact that if the economy is bad then it may not be the best investment to take or if the economy is doing well it would be the best road to take. The marginal benefits and cost on the decision to purchase a home would have to consider the changes that might happen in one’s life style. The two elements will play a huge role in buying a new home one would still have to keep in mind the upkeep, insurance
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variable D. technology is variable 4. If marginal product is positive but falling A. marginal cost must also be falling B. average product must be falling C. total product is increasing at a decreasing rate D. total product is falling 5. Which one of the following short-run cost curves would not be affected by an increase in the wage paid to a firm's labor? A. Average variable cost B. Average fixed cost C. Average total cost D. Marginal cost 6. To the economist, total cost includes:
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2/26/2011 CASE ASSIGNMENT 2 Ethics and “Price Gouging” in Florida i) Many months before the “Hurricane Season”, our company will negotiate contracts with suppliers in order to make sure that we have higher inventory levels during the “Hurricane Season” to be able to supply the possible high demand for commodities. This situation will increase our inventory cost during the hurricane season and at the end average total cost. We are taking risk of a higher cost to be able to supply possible
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600 1670 6 3000 630 1710 7 3500 640 1730 a. What is the marginal product of the second worker? b. What is the marginal revenue product of the fourth worker? c. What is the marginal cost of the first worker? d. Based on your knowledge of marginal analysis, how many workers should you hire? Explain you answer. Q-4 Optimal Output Answer the next questions on the basis of the following cost
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observing the existing costing allocation, we found out there is an issue on the existing costing report that the manager could not be able to see the real situation. In light of this, there will be brought to the discussion on the feasibility of using an alternative costing method – Activity based costing (ABC) in the latter paragraphs. The issue of misallocation cost With the use of Traditional Absorption Costing (TAC) which means Wilkerson Company is now only put the costing of direct labor and material
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implicit as well as explicit costs in decision making The difference between accounting profit and economic profit, and why economic profit is the correct basis for decisions The difference between “either–or” and “how much” decisions The principle of marginal analysis What sunk costs are and why
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1. Coffee bun market Research and certified by economists and scholars, market structure has 4 types of market. It comprises of perfect, monopolistic, oligopoly and monopoly. Each market has its own characteristics and features which the businessman are required to master so that they are able to apply the business strategy sophisticatedly. First of all, it is perfect competition. In this market type, there are a lot of small firms and customers. Thus, both sides do not have any effect on price
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Decisions Paper Darlene M. Lyles ECO/212 Principles of Economics Darrell Watts University of Phoenix July 14, 2010 Four Principles of Individual Decision-Making The four principles of Individual Decision-Making are trade-offs, opportunity cost, marginal benefits, and incentives (Hubbard & O’Brien, 2010). Trade-offs are defined as risking losing something in return for gaining something else (Hubbard & O’Brien, 2010). It is implied that the person making the trade-off fully comprehends what he is
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