This option could help McDonalds to increase profits by attracting more consumers. Shareholder reports show a quarterly cash dividend per share increase of 15% and annual dividend of $2.80 per share. Comparable sales grew 5.6%. Cash by operations increased $808 million to $7.2 billion. Return to shareholders $6.0 billion (McDonald’s.com, 2012). Elasticity of demand and the market structure for the company’s good or service. * Profit-maximizing quantity is figured by determining the elasticity
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Maximizing Profits in Market Structures Jermaine Adams \University of Phoenix Axia College Competitive markets, monopolies and oligopolies have characteristics that depend on the kind of good they are selling, the demand for that good, and the ability for others to produce those goods. Competitive markets have many small producers but are not able to set the price of their products but rather they choose a price that depends on the market that they are in. If they raise the price of their products
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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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Answer C. Constant opportunity cost James Chasey [pic] Figure 1 3. If the current price for the perfectly competitive firm represented in Figure 1 is $10.00, what would be the result of an increase in fixed cost on the firm’s profit maximizing price and quantity? A. Price increase and Quantity increase B. Price increase and Quantity decrease C. Price constant and Quantity constant D. Price decrease and Quantity decrease E. Price decrease and Quantity increase
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of oranges that will be available at various… 6. Assume product A is an input in the production of product B… • A. Increase the supply of B and increase the demand for C… 7. A market is in equilibrium… • C. If the amount producers want to sell is equal to the amount… 8. Externalities weaken the efficiency of the market system because… • D. Cause certain goods to be overproduced or underproduced… 9. A perfectly inelastic demand schedule… • B. Can be represented by a line parallel to the vertical
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Minimum Wage This assignment is to address the minimum wage within the market structure and maximizing profits. The market structures are competitive market, monopoly, and oligopoly. Minimum wage had been established to protect the work force from employers paying them low wages and to allow the employees to maintain a minimum living standard to protect against poverty. The United States Federal Governments current minimum wage is $7.25 an hour. Many states use this figure or increase the wage
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COURSE STRUCTURE COURSE: ECO1203 ECONOMICS 1 (4 cr) ECO1207 MICROECONOMICS (4cr) PREREQUISITE(S): None COURSE DESCRIPTION: This course is designed to enhance the students’ understanding of basic microeconomic concepts and theories in order to equip them with the basic conceptual abilities and skills in economic problem solving. The theories will include the basic economic problem, supply and demand analysis, consumer behaviour, market structure, production and cost and market failure
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generate the sufficient returns on invested capital, with an intention to maximise the wealth of the owners. The financial manager plays the crucial role in the modern enterprise by supporting investment decision, financing decision, and also the profit distribution decision. He/she also helps the firm in balancing cash inflows and cash outflows, and in turn to maintain the liquidity position of the firm. How does the modern financial manager differ from the traditional financial manager? Does
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Test #2 Practice Test #2: Answer Key Exam number 2 will take place on Monday, April 8th, 2013. This, the second of two practice exams, will be the subject of class on Wednesday. It will not be graded, but will serve only as practice material accurately representing the content and format of the exam. 1.) Walter used to work as a high school teacher for $40,000 per year but quit in order to start his own painting business. To invest in his painting business, he withdrew $20,000 from his savings
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Maximizing Profits in Market Structures. By Damon DeVries. First lets start with A perfectly competitive market. This simply is a market in which economic forces operate unimpeded. There are certain things a market must meet to be competitive the first being that both sellers and buyers are price takers, the second condition is there has to be a large number of firms, there must be no barriers to entry ,all the products from
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