FACULTY OF COMPUTER SCIENCE AND MATHEMATICAL STUDIES ECO 740: ECONOMIC ANALYSIS ASSIGNMENT 1 NAME : CAROLINE HENRY MATRIC NUMBER : 2014261072 FACULTY OF COMPUTER SCIENCE AND MATHEMATICAL STUDIES ECO 740: ECONOMIC ANALYSIS Assignment 1 Answer all questions Discussion Questions 1 Define what is economics and its relationship with the managerial economics. Economics is the study of human behaviour in producing‚ distributing and consuming goods and services in a scarce environment
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Marginal Revenue: Marginal Revenue can be termed as the change in the total revenue from an additional unit that is sold by a firm. Example‚ the total revenue when 10 units are sold is $50‚ and total revenue when 11 units are sold is $55. Marginal Revenue in this case will be (55-50)/(11-10) = $5. One can compute the total revenue if the marginal revue and the number of units sold. If the marginal revenue of a product is zero than the total revenue will not change with an increase in the number
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wants to sell more output‚ it must lower the price of its product. A monopoly’s marginal revenue will always be less than the price of the good (other than at the rst unit sold). 1. If the monopolist sells one more unit‚ his total revenue (P Q) will rise because Q is getting larger. This is called the output e ect. 2. If the monopolist sells one more unit‚ he must lower price. This means that his total revenue (P Q) will fall because P is getting smaller. This is called the price e ect. Remember that
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Abstract The following paper discusses a business proposal on hair extensions. The proposal will include profit maximization strategy‚ how to increase revenue‚ entry into the market. The proposal will also look at product differentiation and the mix of pricing and non-pricing strategies to increase revenue as well as pricing and non-pricing strategies for hair extensions under the current business cycle in the United States economy. Lastly‚ the paper will look at business decisions
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Chapter 10 (Tentative Due Date: by November 1) Question 2: Discuss the major barriers to entry into an industry. Explain how each barrier can foster either monopoly or oligopoly. Which barriers‚ if any‚ do you feel give rise to monopoly that is socially justifiable? LO1 The major barriers to entry in an industry are economies of scale‚ legal barriers such as patents & licenses and other strategic or pricing barriers. Economies of scale occur only in large firms who are able to reach a minimum
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Bruce Palmer had worked for Moss and McAdams (M&M) for six years and was just promoted to account manager. His first assignment was to lead an audit of Johnsonville Trucks. He was quite pleased with the five accountants who had been assigned to his team‚ especially Zeke Olds. Olds was an Army vet who returned to school to get a double major in accounting and computer sciences. He was on top of the latest developments in financial information systems and had a reputation for coming up with innovative
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requested recommendations addressing how TMS can increase revenue‚ its ideal production levels‚ maximizing profit through fixed and variable costs in addition to reducing costs. Recommendations Increasing Revenue Increasing revenue is the goal and continuous effort of any organization regardless of how the economy is doing but it is most important in a declining economy. Thinking and planning strategically will assist any business in increasing revenue. Due to all of the natural disasters that have occurred
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decision. It is the problem revenue from alternative sacrificed. * Opportunity cost may be defined as the revenue foregone or opportunity lost by not using the resources in second best alternative use. * Opportunity cost requires measurement of sacrifice. It measures the sacrifice made for making (taking) a decision. * Incremental principle The incremental principle may be stated as follows: A decision is clearly a profitable one if :- * It increases revenue more than costs. *
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1. Suppose your college institutes a new policy requiring you to pay for a permit to park your car in a campus parking lot. a. The cost of the parking permit is not part of the opportunity cost of attending college if you would not have to pay for parking otherwise. b. The cost of the parking permit is part of the opportunity cost of attending college if you would not have to pay for parking otherwise. c. Only half of the cost of the parking permit is part of the opportunity cost of attending
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peaches. 4.4aii. Case 1: If I do not discover the rotten peaches‚ the quantity demanded is 100. Case 2: If I discover the rotten peaches‚ the quantity demanded is 90. It is the fact that the total costs in these two cases remain the same so revenue is the main point to determine which cases is better in terms of profitability. Overall‚ the total profit in case 2 is greater than that in case 1 so it is good to discover that 10 of peaches are rotten. 4.4bi The short-run production means there
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