pay for a good. Hence, his marginal valuation of a good determines the maximum amount of other goods that he is willing to pay in order to obtain an additional unit of the good. As long as his marginal valuation is higher than the actual amount paid, he will continue to buy the good concerned. At the margin, he will pay the maximum of what he is willing to pay, otherwise his behavior would be inconsistent with maximization. Hence, what he pays at the margin his marginal valuation. When allocating
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Case Analysis Of Harrington Collection Submitted by J. G. I. Factual Summary: 1. Harrington Collection, a large manufacturer and retailer of high-end women’s apparel faced declining sales and shifting consumer tastes, and the company needed to consider new strategies to compete in the women’s apparel industry. 2. Harrington Collection’s retail group operated 120 company stores: 70 stores sold a combination of Harrington Limited and Christina Cole merchandise, and 50 of the stores
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Production-cost cross-subsidization results from | | | Student Answer: | | allocating indirect costs to multiple products. | | | | assigning traced costs to each product. | | | | assigning costs to different products using varied costing systems within the same organization. | | | | assigning broadly averaged costs across multiple products without recognizing amounts of resources used by which products. | | Instructor Explanation: | Chapter 5, Page 138 | | |
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health or effect the ability of seeing a clear blue sky and stars at night, etc… The graphs below shows us that the firms only going to take into account only their own marginal cost that increases the firm’s cost when it produces one or more unit of a goods and hence it will produce where marginal benefits is equals to marginal costs. It indicates that supply equal demands. Referring back to our example of oil refinery it
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institution aim for in correcting market inefficiencies? (chapter 20) a) Correcting deviations from perfect competition in b) redistribution of incomes c) stimulating the appliance of the following productionrule MO = MK (marginal revenue = marginal cost) d) both answer a. and b. are correct 3. In the long-term companies in monopolistic competition make (chapter 7) a) Small positive economic profit b) large positive economic profit c) no economic profit d) none
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Teradata Database Release Summary Release 12.0 B035-1098-067A March 2008 The product or products described in this book are licensed products of Teradata Corporation or its affiliates. Teradata, BYNET, DBC/1012, DecisionCast, DecisionFlow, DecisionPoint, Eye logo design, InfoWise, Meta Warehouse, MyCommerce, SeeChain, SeeCommerce, SeeRisk, Teradata Decision Experts, Teradata Source Experts, WebAnalyst, and You’ve Never Seen Your Business Like This Before are trademarks or registered trademarks
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Rational people systematically and purposefully do the best they can to achieve their objectives, given the opportunities they have. Economists use the word marginal changes to describe small incremental adjustments to an existing plan of action. Margin means edge. Rational people often make decisions by comparing marginal benefits and marginal costs.” (Mankiw, 2008). 4. “People respond to incentives. An incentive is something that induces a person to act. Because rational people make decisions
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los productos marginales de K y L crecientes o decrecientes o constantes? Explique El producto marginal de L es decreciente. El producto marginal de K es constante. d) Asumir precios constantes de los inputs (insumos). Dibuje la forma general de las siguientes: (1) Costo medio de largo plazo. (2) Costo marginal de corto plazo asumiendo que la cantidad de L es fijs. (3) Costo marginal de corto plazo asumiendo que la cantidad de K es fija. (1) $/und Q $/und Q La gráfica muestra
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| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Relationship between Marginal Cost Curve and Average Total Cost Curve: If we look at the above figure, we can easily say that whenever the MC is greater than ATC then ATC starts falling. At quantity 4, the MC = ATC and after that when MC > ATC, ATC is increasing. Also, we
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daily wage (per worker) is $70, and the price of the firm’s output is $32. The cost of other variable inputs is $2,000 per day. You are told that the firm’s fixed cost is “high enough” so that the firm’s total costs exceed its total revenue. The marginal cost of the last unit is $30. 1. Briefly describe the details of the fictitious business that you created for this assignment. The company I was hired for as a managing consultant, Press Body Nutrition is a privately owned company that currently
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