If marginal utility is negative‚ we can infer that Question 1 answers | | total utility is increasing by smaller and smaller amounts | | | total utility has fallen | | | total utility is also negative / | | | the product is an inferior good | A utility-maximising consumer changes their expenditures until Question 2 answers | | MUX = MUY for all pairs of goods / | | | TUX/PX = TUY/PY for all pairs of
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SD – MBA 2 Personal Report Name: Thuy Anh Nguyen November 6‚2012 1. Conditions for profit maximization are: a) Difference between total revenue (TR) and total cost (TC) is maximized; b) Marginal revenue (MR) should be equal to marginal cost (MC) Explanations: If we assume that the company is facing a downward – sloping curve and it produces just one single product a) Profit = TR – TC. Profit will increase if TR increases and TC decreases. If company wants profit maximization‚ it
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meeting‚ we have evaluated the different proposals and come up with one project that we recommend. In doing this‚ we have calculated the change in profits compared with the draft budget and compiled the Break-even charts to justify our recommendation. Marginal Costing Profit Statement of the draft budget £(000) £ (000) Sales 1000 Less Cost of sales: Direct Materials 320 Direct wages 200 Variable factory overheads 100 (620) Contribution 380 Less Fixed
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plants. The demand for your firm’s product is P = 78 - 15Q‚ where Q = Q1 + Q2. The marginal costs associated with producing in the two plants are MC1 = 3Q1 and MC2 = 2Q2. How much output should be produced in plant 1 in order to maximize profits? A. 1 B. 2 C. 3 D. 4 2. You are the manager of a firm that produces output in two plants. The demand for your firm’s product is P = 78 - 15Q‚ where Q = Q1 + Q2. The marginal costs associated with producing in the two plants are MC1 = 3Q1 and MC2 = 2Q2. What
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Explain how the strength of the economy as a whole could affect the marginal benefits and the marginal costs associated with a decision to purchase a home. How does the removal of the tax deduction on mortgage interest affect the housing market? The strength of the economy as a whole could affect the marginal benefits and the marginal costs associated with a decision to purchase a home. Here’s how. When the economy is growing‚ a consumer may feel that the purchase of a house is a good decision
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THE MARGINAL WORLD The edge of the sea is a place in which wave‚ by wave had broken against the land‚ and where the ocean never rests‚ never stops‚ it is always in constant movement‚ it is always changing‚ and the ebb tide knows extreme parts of the world‚ and it is exposed to different temperatures. Living in there‚ in the shore‚ is difficult for animals only the most hardly and adaptable of them can survive‚ but there is a variety of species in there‚ there are also deep in the sand‚ were they
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MARGINAL COSTING Introduction This paper explores the use of cost accounting information for decision-making purposes. DEFINITION OF KEY TERMS Marginal cost: This is the cost of a unit of a product or service‚ which would be avoided if that unit or service was not produced or provided Break-even point: This is the volume of sales where there is neither profit nor loss. 1 9 6 COST ACCOUNTING S T U D Y T E X T Margin of safety: This is the excess of sales over the break-even volume in
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Problem Set 2 Name: Nichole Wharton 1. The following table presents data for wages in the market for internet security professionals. (HINT: in the labor market the roles are reversed. Those who want to hire labor are the demanders. The workers enter the work force providing labor to the market place so they are the suppliers.) |Wage |Quantity Demanded |Quantity Supplied | |$50‚000 |20
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MARGINAL COSTING [pic] SUBMITTED TO: SUBMITTED BY: Dr. Shashi Srivastav ABHISHEK KUMAR RAI
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economics is marginal analysis. By weighing the marginal benefits against the marginal costs one can take the best decision. Marginal Costs- Marginal cost is the change in total cost when one more unit is produced. Marginal cost occurs when an activity increases by one unit. When the firm increases its production the total cost always increases even though the marginal costs may not rise. Rise in marginal costs is shown in the below chart. Following table shows the total cost and the marginal cost by
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