signal from buyers to sellers‚ and the price seen by fi rms signals the marginal benefi t of consumers in the market. If the price consumers pay for a product is greater than the marginal cost to fi rms of producing it‚ then the message being sent to producers is that more output is demanded. In the pursuit of profi ts‚ more resources will be allocated towards the production of the product until the marginal cost and the price are equal. At the P=MC point fi rms maximize their profi ts
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part and parcel of our society. It occurs in profit or non profit organizations‚ government sectors‚ dealing among nations and also in our personal situations such as salary package‚ house purchase‚ marriage‚ divorce and etc. The strategy to use can either be distributive or integrative depending on the situations and the outcomes that the party want out from the negotiation.
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whether to emphasize television advertisements or letters to potential voters in a reelection campaign. Describe the production function for campaign votes. How might information about this function (such as the shape of the isoquants) help the campaign manager to plan strategy? The output of concern to the campaign manager is the number of votes. The production function has two inputs‚ television advertising and letters. The use of these inputs requires knowledge of the substitution possibilities
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goods that a firm is manufacturing is in direct connection with the marginal product. Sometimes‚ less is more and less employees using the right equipment and technologies are able to perform much efficient that a greater number of employees that are using old tools in their activity. . As you well said‚ marginal cost and marginal product are strongly connected. When the value of the marginal cost is dropping‚ the value of the marginal product is raising and vice-versa. The quantity of the inputs can’t
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mind when you think of coal mining? If you’re like me‚ coal mining means living in darkness and a cold hearted industry. Other words that come to mind are poverty and oppression. Coal mining is not a job that you dream about or get a degree for. People who are coal miners do not chose a life full of danger and repression‚ they get stuck with it. There are many dangers that come along with coal mining‚ not only for the workers‚ but for the environment. Coal mining and the coal industry have caused
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MARGINAL PRODUCTIVITY THEORY: A theory used to analyze the profit-maximizing quantity of inputs (that is‚ the services of factor of productions) purchased by a firm in the production of output. Marginal-productivity theory indicates that the demand for a factor of production is based on the marginal product of the factor. In particular‚ a firm is generally willing to pay a higher price for an input that is more productive and contributes more to output. The demand for an input is thus best termed
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The average human beings give of f 60 watts of heat by simply standing in a room. With effective insulation and ventilation it is possible to heat many building types by the heat energy of their occupants alone. Types of Energy Energy resources can be described as
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Notes on labor productivity Labor productivity is a key element in the explanation of how the economy works. It is especially important with regard to wages. What follows is some material about labor productivity and investment spending that is a reorganization of what is presented in your textbook. Its focus is on the connection between labor productivity and wages. Labor productivity is the value of the product or service you can produce in an hour‚ day‚ week or other unit of time. The value
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The goal of coal mining is to obtain coal from the ground. Coal is valued for its energy content‚ and‚ since the 1880s‚ has been widely used to generate electricity. Steel and cement industries use coal as a fuel for extraction of iron from iron ore and for cement production. In the United States‚ United Kingdom‚ and South Africa‚ a coal mine and its structures are a colliery. In Australia‚ "colliery" generally refers to an underground coal mine. Coal mining has had many developments over the recent
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ENVIRONMENTAL ISSUES OF COAL MINING INTRODUCTION Coal is the most abundant fuel resource in India. It is the prime source of energy and perhaps the largest contributor to the industrial growth of the country. It is a crucial and enduring element in a modern‚ balanced energy portfolio‚ providing a bridge to the future as an important low cost and secure energy solution to sustainability challenges. Some important facts about coal industry in India are as follows: •India is
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