Marginal concepts

One of the things that have a huge impact on the economy are prices. Prices are what businesses and companies charge people for certain goods and services. There are many factors that go into determining the prices of things such as, supply and demand, competition in the market, and how much people are willing to pay for things. Many people tend to think that price and cost are the same thing, but they are not. Price is not equal to the cost of a good. The cost of something changes from person…

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…

Assignment 1 Prepare a brief paragraph on the impact of Sputnik and “A Nation at Risk” on public education. Education in the United States has been influenced by several events. One event was the launching of Sputnik by Russia in 1957. Since Russia was a competitive power with the US, in 1958 our government created the National Defense Education Act, NDEA. This act started the federal government’s involvement in education and placed a major focus on the teaching of math and science in schools…

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…

a lawyer. Menger grew in economics while reporting on the market and later went on to take what he learned as a reporter to conclude his own theories on the economy. He developed the modern day explanation of money and came to describe marginal analysis and marginal utility. His ideas are complementary to the Austrian school of economics and his book Principles of Economics actually is what the Austrian school was founded on. Carl Menger was an economist born in February 23, 1840, in what is…

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…

Management accounting is recognised as a working tool for organisations management. It performs the optimum link between labour, materials, machinery, production strategy and control function by supporting the management team in detecting company weak points and providing solutions to improve (Prasad & Sinha, 1990). Concentrates all accounting functions on the company administration with accounting analysis, budgetary control, costing. Also, recognised as the term that best describes the…