Tesca Works Introduction Michael Burton has recently been hired as the CEO of Tesca Works‚ Inc. Previously he had been the marketing manager for a large manufacturing company and had established a reputation for identifying new consumer trends. Tesca Works Inc. is a California-based generator manufacturing company. The company is well known for manufacturing large‚ heavy-duty generators at a reasonable cost. One of its greatest achievements is that its generators can be easily modified
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costs: Never taken into account for economic decisions. Marginal Analysis: Used for profit maximization (deciding how much to produce) where TR and TC are functions of quantity. To maximize profits we take derivative=0 P r o f it M a x im iz a t io n G r a p h For profit maximization‚ marginal revenue should be equal to marginal costs for EACH activity. If MR > MC – increase production If MR < MC – decrease production Demand Curve is the Marginal Benefit curve Consumer Surplus = Net benefit to customers
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in the middle of a one- year rental contract for your factory that requires you to pay $ 500‚000 per month‚ and you have contractual labor obligations of $ 1 million per month that you can’t get out of. You also have a marginal printing cost of $ 0.35 per paper as well as a marginal delivery cost of $ 0.10 per paper. If sales fall by 20 percent from 1 million papers per month to 800‚000 papers per month‚ what happens to the AFC per paper‚ the MC per paper‚ and the minimum amount that you must charge
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The College of Charleston is undergoing an experiment in order to figure out a way to reduce energy costs. They have spent a lot of time trying to figure out what to cut down on or what to get rid of in order to get energy costs under budget and control. One of the ideas was to take a look at the use of lunch trays that students and faculty use while eating in the cafeteria. This seemed to be a good place to look because almost everyone that attended‚ visited or worked for the school ate breakfast
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Economic Analysis History of Timberland The birth of "Timberland" begins with Nathan Swartz‚ a young boot making apprentice stitcher ’ in 1918. At ten years of age the owner of the Abington Shoe Company took a chance and hired a much-needed young helper to learn the craft of boot making. Nathan ’s job responsibilities included stitching seams‚ cutting leather‚ attaching soles and perfecting the art of boot making. Thrity-four years later‚ Nathan furthered his interest in boot making by purchasing
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MICROECONOMIC ANALYSIS TUTORIAL QUESTIONS TOPIC 1 Question 1 (a) Discuss how microeconomic theory can help to explain the effects of lowering the minimum wage for teenage employees in the retail industry (b) How is the usefulness of a theory evaluated (c) “Observation without theory and theory without observation are equally useless in explaining the complexities of the real world”. Discuss. Question 2 (a) Distinguish between positive analysis and normative analysis. (b) The following
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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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The cost of a product under marginal costing or variable costing includes only the variable costs of making the product. The variable costs include direct material‚ direct labour and variable overheads. Variable costs per unit approximate the marginal cost of making another unit of a product. Selling price minus variable costs adds up to contribution. Contribution is the amount of money available to cover the fixed costs and afterwards to contribute to profit. The fixed costs are treated as period
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Production Cost Analysis and Estimation Applied Problems 1. Jennifer Trucking Company operates a large rig transportation business in Texas that transports locally grown vegetables to San Diego‚ California. The company owns 5 large rigs and hires local drivers paid fixed salaries monthly‚ regardless of the number of trips or tons of cargo that each driver transports each month. The below table presents details about the number of drivers and the total cargo transported by the company at different
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Economic Analysis of an oligopoly market structure Supermarkets brew up a crate full of profits 1. Introduction 1a Article Summary Woolworths and Coles continue to extend their dominance in the grocery market and more recently petrol. This has been extended and they are now looking to expand their hold on the Australian market by moving into the liquor industry. Julian Lee (2008) highlights Coles and Woolworths move into the industry‚ by trying to build on their previous acquisitions of liquor
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