Marginal cost

the following is considered to be a cost of information? Answer Selected Answer: The time spent to collect the information. Correct Answer: The time spent to collect the information. • Question 2 2 out of 2 points Assume that a cargo ship carrying the merchandise of a cloth merchant has been wrecked. Such a setback will be accounted as the merchant’s: Answer Selected Answer: sunk cost. Correct Answer: sunk cost. • Question 3 0 out of…

Isocost curve is that curve represents the combination of inputs that will cost the producer the same amout of money. We get the slope of the isocost line. The isocost line shows the various combinations of labor and capital a firm can buy with a given price. The slope of isocost line = PL/Pk. In the given equation, the price of labour is indicated by PL and the price of capital is given by PK. The isocost line may change if the amount of money spent to buy factors changes but the slope…

negative variance. It should also consider the opportunity cost and trade-offs of neglecting orders from other customers whom are willing to pay for the regular price of the good. With 200,000 in brochure printing capacity it would be beneficial for Fineprint to accept the offer. This offer would increase revenues by $2,500 and the profits would stay positive by accepting the offer. The fixed costs will not change but if each variable cost is divided by the former total production amount of…

He could increase his profitability because of the marginal cost and marginal revenue of the musical acts is equal or the marginal costs are higher. The marginal cost is $5. But the marginal revenue cannot be determined. The price needs to be increased to levels where the marginal cost and marginal revenue equal. He is not keeping himself engaged in elastic the administration effectively. In this scenario he should set price so as to fill the capacity of the bar. If he increases the cover charge…

produces up to the point where marginal revenue equals marginal cost. Marginal revenue can be simply defined as the change in total revenues as a result of an increase of one unit. Similarly Marginal cost on the other hand is the change in total cost as a result of an increase in one unit of production. As such maximize profits, as is the aim of all profit making businesses, is to produce and sell units provided the revenue from additional unit(s) outstrip the cost of producing it or them. By…

Economics of the Public Sector Semester 2, 2015 Student: u3102883 Week 10 Tutorial 6  Consider two projects, A and B, with capital costs of $100 million and $20 million respectively. Given an opportunity cost of capital of 7 per cent, A provides an NPV of $30 million. B provides an NPV of $10 million. Explain why A is better than B, although it costs five times as much and produces only three times the net benefit. Net present value method calculates the amount invested today compared…

A grid will be used to coordinate locations and use x and y x coordinates to calculate the cost. The center of gravity strategy assumes the cost of travel versus the cost of distance and volume to be shipped. The center gravity strategy would provide Going, Inc more precise measurements of the ultimate costs and benefits of the selected locations to ensure the location that is selected will most benefit the customer and the production and capacity…

Golf course marketing is very important to keep your golf course thriving. There are so many golf courses that are available to golfers everywhere that you must do something to stand out from the crowd. If you cannot stand out from the crowd, then you are going to be left in the dust with play decreasing day by day, month by month, year by year. In order to keep this from happening you need to stand out from your competitors using proper golf course marketing techniques. Here are a few that you…

To maximize aggregate possible profit. 2. To minimize the risk and uncertainty based on the major unknowns. Decision Problem: Which order size is the best for the upcoming concert? Analysis The comparative study of cost and revenue depicts that because of the inventory cost of the expected excess amount of product profit in the first two orders is substantially low in comparison to the third order size. In the third order size the probability of selling the product is significantly higher…

minorities. More skilled and knowledgable nurses are needed with less turnover rates. In order for the health care industry to run smoothly there are many factors to consider and monitor. The entire field would decline tremoundously if there were no marginal costs to control and with this, economics is extremely valuable and…