Marginal utility

Externalitiy is a very common economic phenomena existing in the current market, and it is also one of the main reasons leading to market inefficiency as well as policy inefficiency. Despite the history of this concept was not so long among other economic theory, it instead plays an very important role in the economy, especially in the field of environmental economy. It is worthwhile to say that internalization of externalities has been discussed by people many years and it is of significance to…

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…

This case can be resolved by utilizing marginal analysis. According to Froeb, firms should sell more if marginal revenue is greater than marginal cost, and sell less if marginal revenue is less than marginal cost (Froeb, L. 2016). Moreover, if marginal revenue is equal to marginal costs, the firm is selling at the right amount (Froeb, L. 2016). If marginal costs are less than revenue, then the firm should sell more units at a reduced price, with…

1. Key features Key features of Combined Cheeses Limited (CCL) that should be considered when selecting a costing system: • Handmade cheese; significant due to production costs being heavily influenced by labour costs. • Expanding quickly; require accurate costing information in order to remain efficient and competitive during growth. • No purchasing power over suppliers; focus of managing costs of converting milk into cheese and minimising wastage costs. • Distribution centre centralises…

Question 1. The operating budget includes the revenues and expenses during the fiscal year, while the cash budget focuses on the coming year. The operating budget is usually more in depth. The cash budget would let the people know if they have enough money on hand or will there be able to collect the money needed during the upcoming year. The focus of a cash budget would be to estimate the incoming revenues the company has coming in the upcoming year of the budget. It would allow…

Q2. What is an inferior good? If the price of an inferior good falls what can we say about the quantity consumed? Explain Definition Consumer’s demand for goods depend upon the level of income. Inferior goods are defined as goods for which quantity demanded decreases with an increase in consumer’s income and quantity demanded increases with a fall in consumer’s income. This happens when the goods have relatively expensive substitutes available whose demand increases when the consumer becomes…

Question 1. What was Analog devices Strategy in the second half of the 1980’s. ? Answer: ADI’s saw both success and failure in the year 1983 to 1986, to fix the things that led them to fail in market in 1986 was the Quality in Process (QIP), Stata attended a Quality program in Philips Crosbys Quality School and understood the imprortance of Total Quality management (TQM). In 1986, ADI hired Schneiderman as vice president Quality and Productivity Improvement, stata wanted Total Quality program…

Dima Assessment Game Theory The Cournot model of oligopoly assumes that rival firms produce a homogenous product, and each attempts to maximize profits by choosing how much to produce. All firms choose output (quantity) simultaneously. The basic Cournot assumption is that each firm chooses its quantity, taking as given the quantity of its rivals. The resulting equilibrium is a Nash equilibrium in quantities, called a Cournot (Nash) equilibrium (OECD, Glossary of Statistical Terms,…

Making an attachment on how in the future across a given period of time with limited or scarce production resources concerning what goods to produce, how much each the goods to produce, to whom the goods are to be produced and which among the goods are to be given. According to Roger Le Roy Miller (1998), the author of Economics, today and tomorrow says Economic goes to a situations in which attachment must be made about how to get with limited resources, when to apply them and for what…

time is considered as a scarce resource, as a day is limited to 24 hours and therefore the main aim of the rational actors is to achieve a maximization of personal time utility (Sirianny & Negrey, 2000). This implies that the actors act in order to achieve their individual preferences and this consequently presupposes a utility-maximizing rational mind-set (Hermann, 2015). In line with this assumption, it is argued that the time devoted to domestic and care activities depends on the amount of…