Marginal utility

In the article ‘Boulder-based company to pay for retaliation”, written by Erica Tinsley from 9 News, tells of how an employee was terminated for questioning the safety of some of the equipment in the location. This was a violation of the employee’s labor rights and Occupational Safety and Health Administration (OSHA) was there to help the employee. The company was to pay $125,000 to their former employee because of their violation of the Consumer Product Safety Improvement Act. When reading this…

diminishing marginal returns has on both marginal cost and average total cost MARGINAL COST Marginal cost is a total cost to the company to produce one more product. This cost changes depending on how many products the company aims to produce. Changes in production may increase or decrease the marginal cost due to the marginal cost including all costs such as materials, labour, infrastructure. Marginal cost diagram has a U-shaped curve as a result of increasing and then decreasing marginal…

A monopoly is a market where the supply of a commodity is controlled by one firm who then becomes the single seller. Monopolies hold power over the market, meaning they can either set a fixed price or determine an output and then sell this output at the highest price the market will bear. The United States Postal Service is a natural monopoly, meaning they have large economies of scale that limit their costs of production and are large enough to efficiently supply the country with mail. Since…

Unprofitable routes were outsourced to the United States Postal Service (USPS), which also benefited from the arrangement. Since the USPS already delivered mail on every route, it generated additional revenue for marginal extra costs. In addition, the ABC system helped to uncover the non-value-added time and cost of shipments between several of UPS customers. For example, a supplier might send raw materials to UPS to hold in a warehouse. UPS would then deliver the…

The rider’s horse were meant to carry saddlebags that contained mail that was sometimes very important documents between Sacramento, California and St. Joseph, Missouri. The very first trial westbound trip was made in 9 days and 23 hours. Then the eastbound journey was made in 11 days and 12 hours. The pony express riders were expected to cover approximately 250 miles on a hard and challenging 24-hour day. The distance was approximately 1,800 miles, and it took the experienced Pony Express…

Due to the 150,000-brochure printing capacity, the special order from Abbie Jenkins should not be accepted. Fineprint would see a $250 savings due to the absence of a sales commission expense. The sales commission does not cover the loss of income from selling the brochures at $10 per 100 brochures instead of the usual $17. Fineprint Company is set up to lose $1,750 if they accepted the offer and $1,500 net, creating a negative variance. It should also consider the opportunity cost and…

Rent is a fixed, committed cost because it does not change due to differences in activity levels. In other words, rent is always a cost that will be due regardless of business activity level. It is generally considered a committed cost because once you sign the lease you are committed to paying rent for the life of the lease (Walther, 2012). Property taxes on land and building are fixed committed cost due to the fact that it does not change as per stipulated tax period. This tax does not affect…

Cycling is a sport everyone. From the top athletes on pro-teams competing in grand tours, time trials, and putting in thousands of miles and hundreds of hours every year. Recreational riders that enjoy participating in local organized event, group, and charity rides. Mountain bikers looking for steep climbs and gravel trails. Elderly people who want a low impact and fun exercise to stay healthy find cycling to be the perfect choice. And commuters, who leave their cars at home and get from point…

I interviewed two (2) Broward County residents who are active bicycle riders. Their thoughts regarding Broward County’s sustainable transportation options to include transportation for bicycle riders follows; • Personal communication from Mr. Dan Braun who is a cyclist and user of Broward County parks: “Broward County parks are a great place to cycle. Sometimes it is a challenge as joggers, runners and walkers share the same sidewalk as the cyclists. Cycling is a good exercise for me and is a…

In today’s business environment, cloud computing and virtualization are the cost effective technologies that are striving in order to maximize speed and agility of IT operations. Cloud computing is a network-based platform for sharing computations and resources. Cloud computing is based on a group of virtualised computing resources. Virtualization is defined as the ability to run multiple operating systems on a single system and share underlying hardware resources. Based on virtualization, cloud…