attempting to maximise profits. Explain the circumstances in which Home Farm might make supernormal profits in the short run‚ but only normal profits in the long run. (15 Marks) Supernormal profit is defined as extra profit above that level of normal profit. Supernormal profit occurs where Average Revenue>Average Total Cost (AR>ATC). Supernormal profit is also known as abnormal profit. Abnormal profit means there is an incentive for other firms to enter the industry. On the other hand normal profit is defined
Premium Economics Microeconomics
Competitive Strategies‚ Government policies and Global Competition Guy Hull‚ Samuel Stahlschmidt and Livio Waits ECO/365 Jan 6‚ 2014 Eugene Kaufman Competitive Strategies‚ Government policies and Global Competition Businesses regardless of size or scope of operations need to be aware of changes in the business environment and plan for such changes. The competitive environment facing businesses encompasses all external entities competing for the same goods and services. These external factors
Premium Las Vegas Strip Casino
Do Not Follow Suit What do we need for life? It is one of the questions that poets and philosophers frequently ask about. Some people need money; some need fame；some need beauties. The answers to this question abound and there is no universally right one. American historian Arthur Schlesinger Jr. gives an answer‚ he says that “If we are to survive‚ we are to have ideas‚ vision‚ and courage. These things are rarely produced by communities. Everything that matters in our intellectual and moral life
Premium Poetry Love Emotion
Evaluate possible economic policies‚ other than increasing the age limit‚ that a government might use to reduce significantly the consumption of alcoholic drinks. The market mechanism should allocate scarce resources to maximise consumer welfare. Alcohol is an example of a demerit good. A demerit good is one which is overprovided by the market mechanism. Apart from alcohol‚ drugs and prostitution are also examples of demerit goods. Consumption of these goods produces large negative externalities
Free Drinking culture Alcoholic beverage Alcoholism
Controlling The last and final function of management is controlling. Controlling is the process of managers evaluating performance and taking actions to improve the organization. From our text book‚ controlling is specifically defined as “evaluating how well an organization is achieving its goals and taking action to maintain or improve performance: controlling is one of the four principal tasks of management”. The main goal and purpose of the controlling function is to see where the organization
Premium Management Goal Control
Controlling management Organizational control is defined as the systematic process through which managers regulate organizational activities to make them consistent with the expectations established in plans and to help them achieve all predetermined standards of performance1. There are 3 types of control. Firstly‚ feed forward controls that mean preventive controls that try to anticipate problems and take corrective action before they occur. For example a team leader checks the quality‚ completeness
Premium Qur'an Control Allah
CONTROLLING INTRODUCTION: Control is the last function of management. If there is any imperfection in the planning & actual performance‚ control will be needed. The deviations are set right by the controlling function. Planning identifies the activities & controlling regulates the activities. MEANING/CONCEPT OF CONTROLLING: Management involves coordinating men & material resources towards achievement of objectives. Individual & organisational behavior involves a continuing sequence of planning
Premium Management Control
ENGL 1101 Why Companies Profits Declined Since the beginning of the last recession United States companies profits have declined drastically. Small local businesses were hurting because of the recession. Record shows “The boom in American corporate profits‚ which has far outpaced the gains in the broader economy since the end of the last recession‚ is faltering” (Schwartz). Even companies worldwide whose majorities of its customers were Americans suffered a loss. Europe economy has taken a down
Premium United States Economy of the United States Unemployment
with a business environment with avenues for profit and growth. This has made Malaysia an attractive export and manufacturing base for investments. There are key government policies which have been put in place to encourage investors and aid the growth of their businesses. Investors are allowed to contribute towards the formulation of government policies which affects their businesses. Below I will be discussing and deliberation on the key government policies that have been put in place for the benefits
Premium Policy Finance Foreign policy
ECOP1001 Economics as a Social Science Essay The essay should compare Two different schools of economic thoughts Question 4. What is profit? Where do profits come from? Economic theories simplify the relations among key economic concepts and enable us to understand different economic concepts. Throughout history‚ different economists in different time periods have formed diverse thoughts on how markets work by building and improving on the work of those who came before them. Therefore in order
Premium Capitalism Adam Smith Economics