A process that companies undergo to determine the best output and price levels in order to maximize its return. The company will usually adjust influential factors such as production costs, sale prices, and output levels as a way of reaching its profit goal. There are...
* Financial capital is not a productive resource
* Entrepreneurship: Human resource that organises land, capital and labourEarns profit
* Come up with new ideas about what and how to produce
* Make decisions, bear the risks that arise from these decisions
THE ECONOMIC WAY OF...
joint venture or not.
Profit maximisation is the process by which a firm determines the price and output level that returns the greatest profit. There are several approaches to this problem. The total revenue - total cost method relies on the fact that profit equals revenue minus...
IA 710 CLASS 1
Scarcity, shortage and substitutability
Answer all parts:
a) What do you think is meant by the concept of constrained choice? Why is economics often
described as the science of constrained choice?
b) Explain how scarcity, choice and opportunity cost are relevant when choosing...
needed to make goods and services
* Land ability of individual to work (‘pacht’)
* Labour (wages)
* Capital (rent)
* Enterprise (profit, rent)
Two distinctions in economics; macro & micro
Macro how the entire economy works (what creates a recession etc)
Micro how individuals...
completing this chapter you should be able to:
identify a product which maximises the contribution per unit of scarce resource when there is only one scarce resource, and determine the optimum solution.
formulate an LP model to solve for the optimal product mix which maximisesprofits, or for cost minimisation...
small number of firms act independently but are aware of each others actions’ (Oligopoly, Online). In perfect competition no single firm can affect price or quantity this is due to intense competition and the relative small size of the firms, on the other hand there is a monopoly market where there is...
macroeconomics • Get to grips with consumer behaviour and its influence on the economy • Spot the signs of a recession and see how economic decisions affect you
Senior Teaching Fellow, University College London
Sean Masaki Flynn, PhD
Assistant Professor of Economics, Scripps College
what brings land, labor and capital together and organizes them into business units that produce goods and services with the objective of making a profit. The production possibility frontier (PPF) is an important illustrative tool, showing the maximum number of products that can be produced by an economy...
relationship with customers and other partners, at a profit, so that the objectives of the parties involved are met. This is achieved by mutual exchange and fulfilment of promises’ (Gronroos, 1997)
Plagiarism: when you take someone work as it is yours. We should avoid this attitude.
Market: where seller-buyer...
conditions of scarcity
and of the results of those choices for society.
Scarcity Principle (no-free-lunch principle): Although we have boundless
needs and wants, the resources available to us are limited. So having more of
one good thing usually means having less of another. Hence the cliché, “there
20.1 Don’t forget to plan your revision phase!
• • • •
Revision of syllabus Testing of knowledge Question practice Exam technique practice
BPP provides revision courses, question days, mock days and specific material to assist you in this important phase of your studies.
1. a) By drawing upon your economic understanding of business, identify and explain the main motivations for firms to grow.
Firms Growth is very wide meaning to explain and not easy to come up with one specific solid arguments. It’s the factor of all market forces.
costing to absorption costing
Need to identify variable costs- i.e those that would not be incurred if the product was not made
A very important concept of marginal costing is contribution
Contribution is the difference between the selling price and variable costs
Need to calculate contribution...
▪ Management accounting
▪ Management control
▪ Decision making
By the end of this section you should be able to understand:
▪ The purpose of management accounting
▪ The concepts and processes of control.
The Role of Management Accounting
Essay : Evaluate the effectiveness of perfect competition and monopoly in meeting the needs of consumers and producers.(1000-1500 words)
What is perfect competition? Perfect competition exists when there are many small firms, all producing homogeneous product or services. In other words, there are...
Managerial Economics Assignment
A certain production process employs two inputs labor (L) and raw materials (R). Output (Q) is a function of these two inputs and is given by the following relationship:
Q = 6L2 R2 - 0.10L3 R3
Assume that raw materials (input R)...
Equilibrium Summary Tutorial Question TOPIC 4 THEORY OF PRODUCTION AND COST THEORY 4.1 Production Process 4.1.1 Industry, Firm and Plant 4.1.2 Input and Output 4.1.3 Long-Run and Short-Run 4.2 Production in Short-Run 4.2.1 Total Product, Average Product and Marginal Product 4.2.2 Law of Diminishing Marginal...
for any damages (including lost marks etc.) as a result of the use of these notes. Use at your own discretion with etc.) caution. Do not rely on them; these notes are not intended to serve as a replacement for your own.
Issues in Financial Reporting & Analysis – Semester 1 2010
P2 Course Notes CMP2CN10(N)
The online classroom – supporting your CIMA studies and helping you to pass!
Q - I’ve seen a chapter once – how should I use the online lecture? If you’re comfortable with a chapter, then there’s no need to revisit it online. However, if there are some elements where another...
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