Marginal cost

the long-run, only normal profits will be achieved as shown in Appendix 2. The reasoning behind this is if supernormal profits are being acquired in the short-run it will incentivise firms to enter the market who will compete for profits by lowering costs until there are no supernormal profits to be earned, i.e. when the firm breaks even. In the short-run, there are a fixed number of firms and a monopolistically competitive firm maximizes profit or minimizes losses by producing the quantity…

overhead costs under control whereas a lower gross profit margin indicates that the company is unable to control its production costs. Ideal gross profit margin depends on the industry. From the above graph, the gross profit margin has shown a decreasing trend over the last ten years with minor increase in the years 2008 and 2010. The decreasing trend is due to the increase in relative manufacturing costs of their products than compared to the relative increase in net sales. Increase in the…

The following essay discuss how cost of producing a product is allocated between direct and indirect cost. One type of direct cost will be identified and examine to how it will reduce cost for WGCN and the consequence of cutting this cost, but maintaining profit and quality. Additionally a flowchart will be use to explain how process work within the laundry department, and later on in the essay Hoskins and Macve (1990) will be summarised and use to explain how it help us “understand modern…

This chapter will provide you with 10 of the most important rules in day trading. 1. Avoid market orders – With a market order, your broker will simply try to sell or purchase assets at the current market prices. However, most of these transactions will be unprofitable because you have limited control over the specific prices at which the assets will be traded. There are times when certain assets experience temporary boosts in price. When this happens after you placed a market order, you will…

The best course of action for the firm would be to sell the production facility at $2 million, because in order to to continue doing business in the next two years, the costs to operate will be greater than the potential profits expected by the company. By the end of four years, company will have already spent $16.5M, vs. the total anticipated return of $14M. With this in mind, the company will have lost $2.5M by the end of four years. In addition, the plant will have no resale value by the end…

the utility-maximization of consumers, the isoquant mapping deals with the cost-minimization of producers. Isoquants are ideally drawn alongside isocost curves in capital-labour graphs, showing the technological trade-off between capital and labour in the production function, and also the decreasing marginal returns of both inputs. Increasing one input while holding the other one constant inevitably leads to decreasing marginal output, and this is reflected in the shape of…

0 or many solutions then our model would not be finding the optimal value. After calculating the optimal values, we were able to verify the accuracy of our model through a few different factors. First, the more we used a truck the smaller the total cost of the entire network. This makes sense because it is cheaper to use trucks rather than drones. Also, as the drone’s velocity increased, the area it was able to serve increased. These were two of the many ways that we were able to verify the…

3.1. Growth Kinetic of strain: The growth curve of strain in both of mediums is shown in Fig. 1 (Supplementary data). It was apparent that 2 hours after nucleation of culture, strain interred to logarithmic phase and continues for 10 h in MRS broth and 12 h in PPM medium. Sonication continued in logarithmic phase in 2 h intervals. 3.2. The effect of ultrasound on growth kinetic: The growth curves plotted for the two condition (with and without sonication) (Fig. 1), growth kinetic parameters…

price of a good or a service with its marginal cost is a key condition to ensure the efficiency of allocation of resources (Hall, 1986). The ultimate goal of this pricing rule is the maximisation of social welfare. If the pricing rule mentioned above is not applied, we can examine two different cases. If the marginal cost of a good is below its price, it should be necessary to decrease the price so as to maximise social welfare. By contrast, if marginal cost is above its price, social welfare…

2.8. Production With One Variable Input (Labour) And Law Of Diminishing Marginal Returns This is the situation were capital is fixed and labour is variable, and only way to increase the output is by increasing the output. amt of labour(L) capital(K) total output(q) avg product(q/L) marginal product(dq/dL) 0 20000 0 0 0 1 20000 30 30 30 2 20000 50 25 20 3 20000 80 26.66666667 30 4 20000 100 25 20 5 20000 115 23 15 6 20000 120 20 5 7 20000 112 16 -8 8 20000 100 12.5 -12 9 20000 90…