Profit maximization Essays & Research Papers

Best Profit maximization Essays

  • Profit Maximization - 488 Words
    Profit Maximization Marginal revenue is the change in revenue which comes from the sale of an additional unit of output. The relationship with total revenue is that total revenue is used in the formula to calculate marginal revenue. A company can calculate marginal revenue by dividing the change in total revenue with the change in output quantity. Because of demand, as production quantity increases the revenue per unit will decrease. On the other hand, marginal cost is the change in the...
    488 Words | 2 Pages
  • Profit Maximization - 432 Words
    8/18/2009 Relevant Equations: PROFIT-MAXIMIZATION AND EMPLOYMENT OF INPUTS Total Revenue (TR) TR  P  Q Marginal Revenue (MR) Optimal Input Usage MR  TR Q Relevant Equations: Net Marginal Revenue of Labor (NMRL) Relevant Equations: Marginal Revenue Product of Labor (MRPL) NMRL  MR  MCcomponents / materials Marginal Product of Labor (MPL) MRPL  NMRL  MPL Marginal Cost of Labor (MC L) MPL  Q L MCL  TC L L Profit Maximizing Rule for...
    432 Words | 5 Pages
  • Profit Maximization - 1854 Words
    PROFIT MAXIMIZATION: REALITY OR A THEORETICAL OBJECTIVE? Research Compiled for The Paper Store, Inc. by Amy Sorter 3/2009 For More Information on This Paper, Please Visit www.paperwriters.com/aftersale.htm Introduction Though many people equate economics with finance and accounting, it's actually a social science, a study of behavior and how rational people behave when it comes to allocation of resources. Within the study of that social science are many theories in which economists...
    1,854 Words | 5 Pages
  • Can Profit-Maximization Be Achieved?
    Business School Business School Strategic Management Module Code: 26390 Student ID: 201019522 Module Leader: Steve Braund Word Count: 2365 Due Date: 15 March, 2012 Introduction Profit was the well-known significance of the enterprise’s existence in the past, because the enterprise was considered as private property of its shareholders. Naturally, profit-maximisation is the objective what the enterprise pursues. With the development of the time, many people began to query the...
    2,659 Words | 9 Pages
  • All Profit maximization Essays

  • Marginal Analysis and Profit Maximization
    Marginal Analysis and Profit Maximization Task A At the point of profit maximization within any firm, the aspects of both marginal revenue and marginal cost play a major role. The economically working definition of marginal revenue is termed as: the extra revenue that an additional unit of product will bring. It is the additional income from selling one more unit of a good; sometimes equal to price (MoneyTerms, 2005). The marginal revenue of the output of any given product ties closely in...
    971 Words | 3 Pages
  • ECO1A Profit Maximization - 1062 Words
     Economics1A 3rd Assignment Presented to: Prof. Michael T. Noel Presented by: Joymie Wilver C. Dayon January, 2015 1. What is Profit Maximization using TR-TC Approach? Profit Maximization using TR-TC Approach is a method in determining the Profit and the Loss of a certain Company. To obtain the profit maximizing output quantity, we start by recognizing that profit is equal to total revenue (TR) minus total cost (TC). Given a table of costs and revenues at each quantity, we can...
    1,062 Words | 4 Pages
  • Profit Maximization and Baumol Model
    Managerial Economics August 15, 2007 The key points underpinning the economics of a profit maximizing firm Neoclassical model of the firm states that organization will have the main objective of maximizing its profit within a given period of time. Maximum profit was achieved at the output at which marginal cost is equal marginal revenue. There are several factors which need to be considered when talking about the profit maximizing firm: 1. The assumption of the profit maximizing firm...
    1,793 Words | 5 Pages
  • Profit Maximization Model - 1890 Words
    SAMPLE ANSWER FOR QUESTION 5 Profit-making is one of the most traditional, basic and major objectives of a firm. Profit-motive is the driving-force behind all business activities of a company. It is the primary measure of success or failure of a firm in the market. Profit earning capacity indicates the position, performance and status of a firm in the market. In spite of several changes and development of several alternative objectives, profit maximization has remained as one of the single most...
    1,890 Words | 5 Pages
  • Wages and Profit Maximization: How Managers Can Maximize the Profit During Crisis
    Wages and profit maximization: How managers can maximize the profit during crisis Among many other objectives of the management like “market share maximization, growth maximization and maximization of managerial return” ( Truett, Lila,J.,& Truet, Dale, B., 2004), the primary goal of each manager is to maximize profit of the company for short- and long-run period. Although there are many other concepts sustaining the idea of increasing shareholder’s wealth as the only manager’s role, the...
    2,285 Words | 6 Pages
  • Market Structures-Profit Maximization and Competitive Supply
    We will now examine the problem of determining price and output levels in alternative market structures. Market structures are categorized in terms of number of firms or the number of sellers present in the market and whether we are considering a homogeneous or differentiable commodity. We will consider four types of market structures: 1. Pure Competition 2. Pure Monopoly 3. Monopolistic Competition 4. Oligopoly Market classifications from the buyer’s angle are, 1. Pure Competition...
    585 Words | 3 Pages
  • Sales Maximization - 324 Words
    Sales Maximization A reasonable, and often pursued objective of firms is to maximize sales, that is, to sell as much output as possible. Clearly sales lead to revenue, meaning that maximizing sales is also bound to maximize revenue. But as the analysis of short-run production indicates, maximizing sales does NOT necessarily maximize profit. So why do firms do it? Are firms unreasonable? Are they irrational? Do they NOT understand the basic economic principles of short-run production? For some...
    324 Words | 1 Page
  • Wealth Maximization - 808 Words
    Wealth Maximization: Wealth maximization has been accepted by the finance managers, because it overcomes the limitations of profit maximization. Wealth maximization means maximizing the net wealth of the company’s share holders. Wealth maximization is possible only when the company pursues policies that would increase the market value of shares of the company. Wealth maximization is based on the concept of cash flows. Cash flows are a reality and not based on any subjective interpretation. On...
    808 Words | 3 Pages
  • Economics and Maximization - 286 Words
    Below is a free essay on "Fin/370 Final Exam One Of Them" from Anti Essays, your source for free research papers, essays, and term paper examples. 1. The goal of the firm should be the maximization of profit. (True/False) TRUE It should be FALSE. The goal of the firm should be maximization of shareholder wealth. 2. For the risk-averse financial manager, the more risky a given course of action, the higher the expected return must be. (True/False) TRUE...
    286 Words | 2 Pages
  • Profit Max - 1034 Words
    MEANING Profit maximization is the traditional approach and the primary objective of financial management. It implies that every decision relating to business is evaluated in the light of profits. All the decision with respect to new projects, acquisition of assets, raising capital, distributing dividends etc are studied for their impact on profits and profitability. If the result of a decision is perceived to have positive effect on the profits, the decision is taken further for implementation...
    1,034 Words | 3 Pages
  • Profit Maximaization - 620 Words
    WHAT IS PROFIT MAXIMIZATION?  Profit maximization, in any organization, is the process of identifying the most efficient manner of obtaining the highest rate of return from its production model.  In other words, it is a process that companies undergo to determine the best output and price levels in order to maximize their return.  The company usually adjusts influential factors such as production costs, sale prices, and output levels as a way of reaching its profit goal. METHODS...
    620 Words | 3 Pages
  • Profit Maximisation - 2111 Words
    Is Profit Maximisation always the major objective of a firm? The production of goods and services in our economy today takes place within organisations, whether in the centrally planned economy or free market economy. Any firm within these societies all have the same tendencies to acquire a successful business. Attaining this succession through mission statements, goals and objectives is simultaneous through all businesses. Changes in these objectives can have forcible effects on the...
    2,111 Words | 6 Pages
  • Marginal Profit - 504 Words
    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,...
    504 Words | 2 Pages
  • Profit Maximisation - 1323 Words
    In this essay I have been asked to carry out basic research for Shamrock Components Plc by using theories I will assess the factors that would influence the decision of the senior managers and whether they should join the joint venture or not. Profit maximisation 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...
    1,323 Words | 5 Pages
  • Cost and Profit - 1304 Words
    WHAT ARE COSTS AND PROFITS? HUNGRY HELEN’S COOKIE FACTORY • Helen, the owner of the cookie factory, buys flour, sugar, flavorings, and other cookie ingredients. • She also buys the mixers and the ovens and hires workers to run the equipment. • She then sells the resulting cookies to consumers. 2 TOTAL REVENUE, TOTAL COST, AND PROFIT • The amount that Helen receives for the sale of its output (cookies) is its total revenue. • The amount that the firm pays to buy inputs (flour, sugar,...
    1,304 Words | 5 Pages
  • Revenue and Sales Maximization - 427 Words
    Revenue and sales maximization Revenue maximization Maximizing sales revenue is an alternative to profit maximization and occurs when the marginal revenue, MR, from selling an extra unit is zero. The notion that business firms (especially those operating in the real world) are primarily motivated by the desire to achieve the greatest possible level of sales, rather than profit maximization. On a day-to-day basis, most real world firms probably do try to maximize sales rather than profit. For...
    427 Words | 2 Pages
  • Maximization of Shareholders Wealth - 482 Words
    1. What are some of the problem involves in the use of profit maximization as the goal of the firm? How does the goal of maximization of stockholders wealth deal with doe’s problem? The goal of profit maximization ignores two major factors which are timing and uncertainly, it is the cause of the problem of a firm. Using profit maximization project and investments are compared by examining expected values, not whether one project is riskier than the other. Profit maximization also ignores the...
    482 Words | 2 Pages
  • Perfect Competitive Market Profit
    Perfect competitive is a market structure characterized by many small firms, which sells homogeneous product, easy entry and exit, and perfect knowledge of market. In the long run, perfect competitive firms only earn normal profit. This is due to the easy entry and exit of firms into the market. Easy entry is mean that a new firm can easily enter the market if it established supernormal profit in the short run, new firms enter the industry and this increase the supply of the product. As...
    279 Words | 1 Page
  • Profit Maximising Midel - 661 Words
    PROFIT MAXIMIZATION [See Chap 11] 1 Profit Maximization • A profit-maximizing firm chooses both its inputs and its outputs with the goal of achieving maximum economic profits 2 Model • Firm has inputs (z1,z2). Prices (r1,r2). – Price taker on input market. • Firm has output q=f(z1,z2). Price p. – Price taker in output market. • Firm’s problem: – Choose output q and inputs (z1,z2) to maximise profits. Where: π = pq - r1z1 – r2z2 3 1 One-Step Solution • Choose...
    661 Words | 5 Pages
  • Game Theory and Profit - 2403 Words
    Chapter 11 Consider two firms facing the demand curve P = 50 - 5Q, where Q = Q1 + Q2. The firms’ cost functions are C1(Q1) = 20 + 10Q1 and C2(Q2) = 10 + 12Q2. a. Suppose both firms have entered the industry. What is the joint profit-maximizing level of output? How much will each firm produce? How would your answer change if the firms have not yet entered the industry? If both firms enter the market, and they collude, they will face a marginal revenue curve with twice the slope of...
    2,403 Words | 8 Pages
  • Profit Maximisation Theory - 3399 Words
    profit maximization Definition 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 two main profit maximization methods used, and they are Marginal Cost-Marginal Revenue Method and Total Cost-Total Revenue Method. Profit maximization is a good thing for a company, but can be a...
    3,399 Words | 14 Pages
  • Profit Maximisation in Zimbabwe - 749 Words
    PROFIT MAXIMISATION IN ZIMBABWE The traditional economist’s view is that firms are profit maximizes, with each decision based on the need to maximize profits (Griffiths and Wall, 2005). Although the assumption of profit maximization has come under repeated criticism, it still remains relevant to the Zimbabwean firm today irrespective of size. To begin with, a profit objective is often the principal reason for the original formation of the smaller companies, the majority of which are under the...
    749 Words | 3 Pages
  • The Only Rule of Business Is the Increase of Profits
    Tutorial 3 1.) “The only rule of business is the increase of profits.” Discuss. We are now discuss about the rule of business, is it just maximize profit without any moral responsibility? Or we need to make decisions that protect and benefit society? According to the Dictionary of Finance and Investment Terms, social responsibility is the “principle that businesses should actively contribute to the welfare of society and not only maximize profits”. We don’t have “absolutely” in the...
    759 Words | 3 Pages
  • Discuss Profit Maximizing Method in Detail
    In economic analysis the most common objective that firms are regarded pursuing is profit maximization. It best explains the normal behavior of the firm. The profit maximization model is based on the assumption that each firm seeks to maximize its profit under certain constraints (technical and market). Propositions of the Model: • By employing certain techniques of production, a firm converts various inputs into outputs of higher value. • Each firm aims to earn maximum profit. • A firm...
    306 Words | 2 Pages
  • Profit maximisation is not the sole objective of business.
    Profit maximisation has been one of the main aims of the firms. The generally accepted view is the long run will wish to maximize profit. Marginal Cost and Marginal Revenue can be used to find the profit maximising level of output. Marginal cost is the addition to total cost of one extra unit of output. Marginal revenue is the increase in total revenue resulting from an extra unit of sales. Economic theory predicts that profits will be maximised at the output level where marginal cost equals...
    1,085 Words | 3 Pages
  • Revenue (vs) Profit Maximizers (Apple vs Samsung)
    Revenue Maximization (vs.) Profit Maximization Profile of Samsung and its financial matrix  Established in 1938  Founder : Byung chull lee, Lee kun-hee  Present CEO : Oh – Hyun Kwon  Headquarters: Seoul, South Korea  Industry: Consumer electronics Telecom equipment Semiconductors Home appliances  Has 285 overseas operations within 67 countries  Revenues: US $ 1,43,069 Millions  Profit: US $ 14,878 Millions  Employs approximately 2,21,700 people ...
    743 Words | 3 Pages
  • Econ 561 Profit Analysis Question 2 LO3
    2-8 (Key Question) With current technology, suppose a firm is producing 400 loaves of banana bread daily. Also, assume that the least-cost combination of resources in producing those loaves is 5 units of labor, 7 units of land, 2 units of capital, and 1 unit of entrepreneurial ability, selling at prices of $40, $60, $60, and $20, respectively. If the firm can sell these 400 units at $2 per unit, will it continue to produce banana bread? If this firm’s situation is typical for the other...
    673 Words | 3 Pages
  • Economics MR=MC profit maximizing/loss minimizing
    All Firms Should Produce at MR=MC In economics, the point of profit maximizing and loss minimizing is called MR=MC. This point is where marginal revenue equals marginal cost, meaning that cost does not exceed revenue and revenue does not exceed cost. This is a profit-maximizing zone, meaning that total cost is not the lowest, but is farthest away from the total returns. The optimal point of production for the firm is at the point MR=MC. Marginal revenue is defined as the change in total revenue...
    683 Words | 2 Pages
  • Outline briefly the managerial criticisms of the profit maximising firm - Compare and contrast the Neo-classical profit maximising model with the management model of Baumol.
    Since the 12th century and the escalation of separate owner / managed business organizations, the assumption that firms maximises profits has been at the forefront of economic theory. Cyert and Hedrick (1972) stated:"The unmodified neoclassical approach is characterised by an ideal market with firms for which profit maximisation is the single determinant of behaviour. Thus predictions can readily be made by combining the description of the market with the results of maximisation of the relevant...
    2,374 Words | 8 Pages
  • Why Might a Business Firm Pursue Other Objectives Besides the Objective of Maximum Profits? What Objectives Other Than Profit Maximisation Might a Firm Pursue? Is This Possible in a Competitive World?
    Why might a business firm pursue other objectives besides the objective of maximum profits? What objectives other than profit maximisation might a firm pursue? Is this possible in a competitive world? The traditional theory of business behaviour tends to make a general assumption that businesses possess the information, market power and motivation to set a price and output that maximises profits. Profits being defined as the difference between the total revenue received by a firm and the total...
    1,076 Words | 3 Pages
  • Discuss type of Profit concept in Accounting and Economics and the Contribution of such an understanding in dealing Management issues
     Alpha University College Graduate Studies - MBA Program 1. Meaning of Profit: Profit means surplus remaining after total costs are deducted from total revenue, and the basis on which tax is computed and dividend is paid. Profit is the money a business makes after accounting for all the expenses. A financial benefit that is realized when the amount of revenue gained from a business activity exceeds the expenses, costs and taxes needed to sustain the activity 2....
    1,577 Words | 5 Pages
  • Operations Management - 1231 Words
    Operational Management Simulation on Benihana Case 1. What were the take aways and what did you learn? 2. What would you do differently next time? There are many performance indicators for the success of a business. This include brand identity, reputation, innovation, leadership, productivity, process management, customer satisfaction, and quality to name a few. Management at Benihana can achieve maximum profitability by maximizing utilization, throughput time, making use of batching,...
    1,231 Words | 4 Pages
  • Egt1 Task 1 Marginal Revenue
    EGT 1 Task 1 Section A Marginal Revenue is the increase in revenue from the sale of one additional unit of output. Marginal revenue is calculated by dividing the change in total revenue by the change in output quantity. Marginal revenue can remain consistent over a specific level of output, but it will eventually slow down, as output level increases. Section A1 Total Revenue is the increase in revenue that results from the sale of one additional unit of output. Total Revenue is...
    607 Words | 3 Pages
  • Evaluation of Baumol's Model - 1720 Words
    Introduction Generally in business, there is a trade-off between selling many units at a low price and selling only a few units at a high price. There are different managerial models in a firm embodying different assumptions like the Profit Maximization Model which is a traditional model, the Marris Model, the Williamson Model and the Baumol Model. This write-up will focus on understanding management preferences in terms of...
    1,720 Words | 7 Pages
  • EGT1 Task 1 - 386 Words
    EGT1 Economics & Global Business Applications (V1 UG 0213)-PA Name: Christopher Talag Student Number: 274350 Task 1: A. Explain profit maximization from the following approaches: Profit maximization can be explained according to the following approaches according to McConnell (2012): 1. Total revenue to total cost - profit maximization is achieved when the difference of the total revenue minus the total cost is at the highest point. 2. Marginal revenue to marginal cost - means that...
    386 Words | 2 Pages
  • Research Paper - 1063 Words
    1. A news magazine offers students a discount on the regular subscription rate. The total number of subscriptions is optimal, and, at the current prices, the marginal revenue from the last subscription sold to a student is $6, while the marginal revenue from the last subscription sold to a regular customer is $10. In order to maximize profit, the magazine should a. stop offering students a discount on the regular subscription rate. b. offer students a higher discount (lower the price to...
    1,063 Words | 3 Pages
  • Outline the Critical Assumptions of the Baumol Model. in Your Reply, Identify What You Would Regard as the Key Contributions of the Model to Managerial Economics. Is the Model of Direct Relevance to Modern Management Decision Making?
    Key Concepts: - Focus on pricing to maximise revenues and volumes - Separation of ownership and control - Principal Agent – Highlighted in the 1930’s - Shareholders may incentivise management - Revenue maximisation – why this? - Total revenue test - Price elasticity = Baumol Q - Trigger Price - A strategy set is a string of moves - Neo-classical (market – cost minimisation) vs Managerial model of firm (visible hand of management) - Type influences behaviour = seeking to maximise some...
    423 Words | 2 Pages
  • Judo Economics - 1772 Words
    PROBLEM SET # 3 JUDO ECONOMICS The Problem is premised on the following phased structure; | Decision Maker | Decisions To Be Made | Stage 1 | Entrant | Whether to enter or opt out | Stage 2 | Entrant | Set up the price(Pe) and the number of target customers(T) | Stage 3 | Incumbent | Whether to fight or accommodate; 1) Price war 2) Set up the price for remaining customers (100-T) | Stage 4 | Buyer | Consumers buy from whoever offers them the highest surplus. There is no cost to...
    1,772 Words | 7 Pages
  • Cost and Revenue Simulation Eco 561
    Cost and Revenue Curves Simulation Having different business objectives is one way of showing the differences in output and its way to use total revenues and total cost curves. The shape of the total cost will depend on what happens to marginal cost. The profit maximizing outputs occurs when at the greatest vertical distance between the TR and TC curves. However, revenue maximization occurs at a higher output level. Any corporation is an organization with several groups like employees,...
    1,070 Words | 4 Pages
  • Easy to Study - 257 Words
    Bindley Corporation has a one -year contract to supply motors for all washing machines produced by Rinso Ltd. Rinso manufactures the washers at four locations around the country: New York, Forth Worth, San Diego, and Minneapolis. Plans call for the following numbers of washing machines to be produced at each location: New york 40,000 Fort Worth 80,000 San Diego 55,000 Minneapolis 75,000 Bindley has three plants that can produce the motors. The plants and production capacities are Boulder 110,000...
    257 Words | 1 Page
  • WGU EGT1 Task 1
    Task In this given situation a company exists in a monopolistic competition where a company sells widgets. As more widget are sold the company must offer discounts on the product in order to sell more units. The table below includes the Total Revenue and Total Cost information needed to perform marginal revenue and marginal cost calculations that will be explained below. Quantity0123456789101112131415Quantity0123456789101112131415...
    746 Words | 2 Pages
  • Micro Economics Fiori Pasta
    1. Meet the Fiori family and its Fiori Pasta Company. Papa Don is the president, son Tony is vice-president of sales, and daughter Gina is vice-president of production. Fiori Pasta produces high-quality pasta products. It has estimated its demand curve for its pasta to be P=39.898-0.03757Q, This demand function has been given in terms of price. So to find the Total Revenue (TR) you need to multiply the above equation into Q (which is your quantity). TR=39.898Q-0.03757Q2...
    533 Words | 3 Pages
  • Models of Industry Comparison Doc HaoYang
     Weber's Least Cost Theory: Assumption the owner of plant would try to minimize three categories of variable costs Transportation, Labor, and Agglomeration. Transportation is the most important part because it decides the potential lowest cost of transporting raw materials as well as final products. Labor costs money and reduces profits so that owner will seek cheap labor forces(e.g China). Sharing information or technologies between different companies will boost production, maximize...
    453 Words | 2 Pages
  • Sales Maximisation Model - 256 Words
    according to Baumol, every business firm aims at maximization it sales revenue (price x quantity0 rather than its profit. Hence his hypothesis has come to be known as sales maximization theory & revenue maximization theory. According to baumol, sales have become an end by themselves and accordingly sales maximization has become the ultimate objective of the firm. Hence, the management of a firm directs its energies in promoting and maximizing its sales revenue instead of profit. The goal of...
    256 Words | 1 Page
  • AMB_assignment - 604 Words
    Raggs, Ltd., a clothing firm, determines that the marginal profit and marginal cost are given by , . Find the total revenue if R(0) = 3000. 1, The distance profit is given by the definiteinte gral of (P’(x)) Px=P'x=150-0.5xdx =150x-0.25x2+CThe distance cost is given by the definiteinte gral of (C’(x)) Cx=C'x=4000+0.25x2dx =4000x-112x3+CWe have the total revenue is R(x) = P(x) + C(x) Cx=150x-0.25x2+C+4000x+112x3+C...
    604 Words | 3 Pages
  • Managerial Economics (12 Edition) by Mark Hirschey Ch. 2 Problem
    ST 2.1 (Page 43 in Text Book): Profit vs Revenue Maximization Presto Products, Inc. recently introduced an innovative new frozen dessert maker with the following revenue and cost relations. P = $60 – $0.005Q TC = $88,000 + $5Q + 0.0005Q2 MR = ∂TR / ∂Q = $60 – $0.01Q MC = ∂TC / ∂Q = $5 + $0.001Q A. Setup a spreadsheet for output (Q), price (P), total revenue (TR), marginal revenue (MR), total cost (TC), marginal cost (MC), total profit (π), and marginal profit (Mπ). Establish a range...
    712 Words | 3 Pages
  • Utilitarianism - 2287 Words
    Bachelor of Science (Hons) in Accounting and Finance Module: MAN0812M – Ethics in Business and Society Individual Assignment Lecturer: Mr Darwin Joseph Q1. Shareholder theory argues that maximising shareholder interest (typically profit maximisation) will, via Adam Smith’s “invisible hand” tend to maximise utility because it will result in the most favourable happiness/unhappiness ratio. (On the hand) Advocates of stakeholder theory argue that all stakeholders (shareholders,...
    2,287 Words | 9 Pages
  • Ethical Viewpoint - 3078 Words
    Introduction: Corporate Social Responsibility (CSR) is always an on-going issue that companies have to cope with. What are the responsibilities that companies should take other than the maximization of return to shareholders and by taking such responsibilities, how it may affect the operation of the firms as well as how effectively such actions could have on the society. There have been two main positions on the CSR issue. The first is the Friedmanian one stating that “there is one and only one...
    3,078 Words | 8 Pages
  • NSU MC7 - 1606 Words
    Question 1 4 out of 4 points A firm selling in two markets is practicing price discrimination Selected Answer: b. when it is charging different consumers different prices and the price difference is not based upon cost differences. Question 2 4 out of 4 points To maximize profit a price discriminating firm should Selected Answer: d. both a and c Question 3 0 out of 4 points If a firm is selling a product in two markets, A...
    1,606 Words | 10 Pages
  • Answers to Business Calculus Project
    Find the Revenue Function: Let p be the price per hamburger and q be the number of hamburgers sold Revenue = (unit price) x (quantity sold) (40,000, 1.00) (20,000, 2.00) (q, p) y = mx+b slope = 1.00-2.00 = -1 40,000-20,000 20,000 1.00 = (-1/20,000)(40,000) + b 1.00 = -2 + b +2 +2 3 = b y = (-1/20,000)x + 3 p = (-1/20,000)q +3 This is the demand equation Revenue = q((-1/20,000)q + 3) Revenue(q) = (-1/20,000)q^2 + 3q This is the...
    628 Words | 4 Pages
  • Economics task 1 - 335 Words
    The relationship between marginal revenue (revenue generated by increasing product sales by 1) and marginal cost (the cost in producing that 1 extra product) is important to a business in terms of profit maximization. A business reaches maximum profit when there is equilibrium between these two numbers. An imbalance on either side will result in a decrease in profit. Profit maximization in terms of total revenue to total cost shows that the maximum profit is achieved when the distance...
    335 Words | 1 Page
  • Rock "N" Rap - 597 Words
    Homework 12 Rock ‘n’ Rap Gabriel Gonzalez Block: 4 It costs the company an average of $15,000 to produce a rock CD and an average of $12,000 to produce a rap CD. Also, it takes about 18 hours to produce a rock CD and about 25 hours to produce a rap CD. The company can afford to spend up to $150,000 on production next month. Also, the company will spend at least 175 hours on production. The company earns $20,000 in profit on each rock CD it produces and $30,000 in profit on each...
    597 Words | 2 Pages
  • Business Decision Models Assignment 1 Winter 2012
    BDM assignment question 2b With this new requirement of shoe stores equally jewelry stores, a number of results will change in our solution. The additional constraint you need to add is that shoe stores equals jewelry stores. The new optimal solution is the following; two shoe stores, two jewelry stores, three department stores, two bookstores and two clothing stores. This total space will equal 9900 square feet and the total profit is $1,390,000. This would decrease the total profit by...
    506 Words | 3 Pages
  • Fields - 6422 Words
    Center for Advanced Human Resource Studies (CAHRS) CAHRS Working Paper Series Cornell University Year  In There or Up Front? : An Introduction to Bottom-Line Human Resource Management Gary S. Fields Cornell University, gsf2@cornell.edu This paper is posted at DigitalCommons@ILR. http://digitalcommons.ilr.cornell.edu/cahrswp/48 CAHRS / Cornell University 187 Ives Hall Ithaca, NY 14853-3901 USA Tel. 607 255-9358 www.ilr.cornell.edu/CAHRS/ WORKING PAPER SERIES In There or Up...
    6,422 Words | 20 Pages
  • Assignment - 420 Words
    Learning activity 3 ch 1-U1 Javier Hernández Rosado M00-14-4476 1. In what sense do maximization of sales and maximization of management welfare agree or disagree? 2. Negative economic profits is an indicator that the firm is making negative accounting profits. Explain why or why not. 3. Monopoly profit theory is an extension of frictional profit theory. Explain why or why not. Answers: 1. The maximization of management explain that managers maximize the salaries and fringe the benefits....
    420 Words | 2 Pages
  • Jd Sports and Oxfam Analysis
    CONTENT’S Heading’s Page P3. Outline the rationale of the strategic aims and objectives of two contrasting organisation? 1. Introduction 3 2. Background of JD sports 3 3. Aims/Objectives for JD Sports 3/4 4. Strategies for JD Sports 4/5 5. Background for Oxfam 5 6. Aims/Objectives for Oxfam...
    3,702 Words | 13 Pages
  • Economics objectives of firms - 929 Words
    12-Sep-13 Objectives of firms 1. Profit Maximisation In neo-classical economics it is assumed that the interest of owners or shareholders are the most important. Just as consumers attempt to maximise utility, shareholders main motivation is to maximise their gain firm the company. Therefore, one of the main objectives of firms is to maximise profit. Profit is the reward for the risk-bearing function of the entrepreneur. The firm is in equilibrium, and is maximising profit, when...
    929 Words | 9 Pages
  • Critically Evaluate the Management Model of Baumol
    Under the traditional economic understanding, it is always assumed that profit maximization is treated as the main goal or objective for businesses, subject to perfect knowledge, single entity and rational logic. However, as illustrated by the principal-agency problem, managers do not usually make rational decision entirely like owners who take company interest as their sole basis for their decisions. Past examples have shown that managers do take their own personal goals and satisfactions as...
    2,313 Words | 7 Pages
  • EGT1 Task1 - 838 Words
    EGT1 – Task 1 Western Governors University Economics and Global Applications In business you have to have measurements and balances that aid you in understanding if you are being successful or not, in short are you making a profit. To understand these measurements is imperative to understanding how to make a profit and plan for your future growth and development. That is where you have to understand how to balance cost vs. profit or ROI, Return on Investment. ROI is not so difficult if...
    838 Words | 2 Pages
  • Simulation Strategies - 739 Words
    Simulation Strategies Quasar Computers has developed an all-optical notebook computer called Neutron that is five times as fast as existing microchip-based computers. They have asked the author to make operational and business strategy decisions in response to market conditions. The author has been asked to create a solution to these conditions using strategic variables available to sustain the economic profits the firm can earn, recommend pricing and non-pricing strategies, and what kind...
    739 Words | 2 Pages
  • Workload Balancing - 818 Words
    Workload Balancing Managerial Report Perform an analysis for Digital Imaging in order to determine how many units of each printer to produce. Prepare a report to DI’s president presenting your findings and recommendations. Include (but do not limit your discussion to) a consideration of the following: Printer | Variable | Profit | Line 1 Assembly (mins) | Line 2 Packaging (mins) | mins available per day | D1-910 | "X91" | $42 | 3 | 4 | 480 | D1-950 | "X95" | $87 | 6 | 2 | 480 |...
    818 Words | 4 Pages
  • Assignment 4 - 1028 Words
    Economics 1101 -- Assignment 4 Problem 1. a. (1 point) What is the total fixed cost for the DeBeers Diamonds? The total fixed cost for the DeBeers Diamonds is zero. b. (2 points) Complete the table above, providing total revenue, marginal revenue and marginal cost, as well as Total Cost when Q = 0. (Remember to put marginal items in between units.) COSTS REVENUES Quantity Produced Total Cost ($) Marginal Cost Quantity Demanded Price ($/unit) Total Revenue Marginal Revenue 0...
    1,028 Words | 5 Pages
  • Dunkin Donuts - 2362 Words
    Dunkin Donuts One of the major economic areas in north central Wisconsin is Wausau. The city is home of the most popular technical college. The love of coffee and ice cream brings the owner to open a Dunkin Donuts/Baskin Robbins near the college. Commercial space is available to build a facility, and the spot is right. The competition is a few fast food chains and two bakeries. The city has no Starbucks, but does have a Dairy Queen that is at the other side of town. The market structure...
    2,362 Words | 7 Pages
  • Egt1 Task 309.1.1-05 06
    A: Marginal revenue is the change made in total revenue a company makes caused by an additional item being produced. This is calculated by figuring the difference between the revenue produced both before and after a single unit increase in the production rate. If the price of a product is constant, the marginal revenue and price are the same. Sometimes an additional item will only sell if the price goes down and that leads to the consideration of marginal cost or the cost of producing one...
    864 Words | 3 Pages
  • Quantitative Methods - 298 Words
    Statistics and Quantitative Methods ASSIGNMENT: 2 PREPARED FOR: CHOWDHURY PREPARED BY: VALLEY STATE UNIVERSITY DATE: 13. The Electrotech Corporation manufactures two industrial-sized electrical devices: generators and alternators. Both of these products require wiring and testing during the assembly process. Each generator requires 2 hours of wiring and 1 hour of testing and can be sold for a $250 profit. Each alternator requires 3 hours of wiring and 2 hours of testing and...
    298 Words | 2 Pages
  • Mat 540 Assign 3
    A: Formulation of the LP Model X1(Pizza), X2(hotdogs), X3(barbecue sandwiches) Constraints: Cost: Maximum fund available for the purchase = $1500 Cost per pizza slice = $6 (get 8 slices) =6/8 = $0.75 Cost for a hotdog = $.45 Cost for a barbecue sandwich = $.90 Constraint: 0.75X1 + 0.45X2+ 0.90(X3) ≤ 1500 Oven space: Space available = 3 x 4 x 16 = 192 sq. feet = 192 x 12 x 12 =27648 sq. inches The oven will be refilled before half time- 27648 x 2 =...
    1,377 Words | 5 Pages
  • Marries Hypothesis - 338 Words
    Marris’s Hypothesis of maximization of Firm’s growth rate According to Robin Marris – USA, managers maximize firm’s Balanced Growth rate subject to managerial and financial constraints. He defines firm’s Balanced Growth rate(G) as G = GD = GC Where GD = growth rate of demand for firms product GC = growth rate of capital supply to the firm. In simple words, a firm’s growth rate is balanced when demand for its product and supply of capital to the firm increases at the same rate.the two...
    338 Words | 2 Pages
  • Turnaround of Indian Railways - 3246 Words
    Turn Around of Indian Railways Micro Economics Assignment Contents Railways 3 Indian Railways 3 Causes for decline in performance 3 Diagnostics, Recommendations and Initiatives taken by Indian Railways 4 Outcome 5 Domain Analysis 7 Passengers Domain 7 Freight Domain 7 Other Domains 10 Parcel and Catering Services 10 Monopoly of Indian Railways – A welfare maximization firm 13 Revenue Maximization 14 Freight 14 Passenger 14 Others 14 Price Discrimination 15 First...
    3,246 Words | 12 Pages
  • Finding Our Purpose - 1221 Words
    Krisjian Sabala ENG 846 9/19/12 Essay 1 Finding Our Purpose In "Losing my Cool" Williams uses the hip-hop culture as a motivation to find his purpose in life. “Yo, nigga,yoooo, nigaa, yoooo-oooo, niiiiga…” (2) is what Williams repeated under his breath. In "Losing My Cool" Williams is fiercely motivated by the hip-hop culture introduced to him. The hip-hop culture gave Thomas the purpose to keep it real among his black peers and make some type of status for himself. Beyond what the...
    1,221 Words | 3 Pages
  • CH4 CASE EXERCISE Polo Golf Shirts Pricing
    Case Exercise – Polo Golf Shirt Pricing: Solution. The given table is completed as below: Quantity Price Total Revenue Marginal Revenue Variable Cost/Unit Total Variable Cost Price Reduction Marginal Profit/Unit Cumm. Marginal Profit 0 $50 $0 $0 $28 $0 1 $48 $48 $48 $28 $28 ($2.00) $20 $20 2 $46 $92 $44 $28 $56 ($2.00) $16 $36 3 $45 $135 $43 $28 $84 ($1.00) $15 $51 4 $44 $176 $41 $28 $112 ($1.00) $13 $64 5 $42 $210 $34 $28 $140 ($2.00) $6 $70 6 $40...
    466 Words | 6 Pages
  • Egt1, Task1 - 432 Words
    A. The point or number of units produced at which profit maximization or greatest economic profit is achieved can be determined in 2 ways. 1. The first method is the total revenue (TR) to total cost (TC) method. TR-TC This method uses the highest total revenue (TR) less total cost (TC) to determine at what point the quantity produced maximizes total economic profit. In exhibit 1, the point at which profit maximization is achieved is at the production of 8 units. 2. The second method is...
    432 Words | 2 Pages
  • Tortoise and Hare - 1664 Words
    Tortoise and Hare May 2, 2014 “On our honor, we have neither given nor received unauthorized aid in doing this assignment. Furthermore, we have read the entire report and agree that the content accurately reflects our work.” EXECUTIVE SUMMARY Overall the Tortoise and the Hare project was a good example of how production works in the real world. The first round was an eye opener for a few teams in that a little more preparation needed to be done than was done....
    1,664 Words | 16 Pages
  • Objectives of the Firm - 2880 Words
    1) FIRM OBJECTIVES: The standard economic assumption underlying the analysis of firms is profit maximization. Real world firms, however, might not, and many times do not, make decisions based on the profit-maximization objective, or at least exclusively on the profit-maximization objective. Other objectives include: (1) sales maximization, (2) pursuit of personal welfare, and (3) pursuit of social welfare. Although firms are assumed to make decisions that increase profit in standard...
    2,880 Words | 8 Pages
  • EGT1: Task 1 - 514 Words
    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...
    514 Words | 2 Pages
  • eco polo - 477 Words
     1) Identify the change in total revenue (the marginal revenue) from the fourth shirt per day. What price reduction was necessary to sell four rather than three shirts? Marginal revenue for the fourth shirt is $41 even though it price is $44. Price reduction is $1 which is from $45 to $44. 2) What is the change in total revenue from lowering the price to sell seven rather than six shirts in each color each day? The change in total revenue from selling seventh shirts rather than sixth shirts...
    477 Words | 6 Pages
  • X 410 “Business Applications of Calculus Problem Set 1
    X 410 “Business Applications of Calculus” PROBLEM SET 1 [100 points] PART I As manager of a particular product line, you have data available for the past 11 sales periods. This data associates your product line’s units sold “x” and total PROFIT “P” results for these sales periods. Product Red03 Units [x] Profit [P] 10 20 100 130 190 240 300 320 380 430 500 -33986 -31792 -9200 790 21418 37728 54000 58208 65840 65050 50000 1 Section A: 1st Order...
    2,663 Words | 30 Pages
  • Operations Management Bindley Corporation Transportation Grid
    Bindley Corporation has one-year contract to supply motors for all washing machines produced by Rinso Ltd. Rinso manufactures the washers at four locations around the country: New York, Fort Worth, San Diego, and Minneapolis. Plans call for the following numbers of washing machines to be produced at each location: New York Fort Worth San Diego Minneapolis 50,000 70,000 60,000 80,000 Bindley has three plants that can produce the motors. The plants and production capacities are Boulder Macon...
    322 Words | 3 Pages
  • Ethics stakeholder analysis - 1126 Words
    Section 1 The case that I chose for this analysis paper was “Management A”. There are two key decision options for this case. The first is to schedule the heavy emissions work for the night shift, so that when the EPA tests their levels during the day, they are normal. The second option given to George as an ultimatum by his boss is to move the plant 15 miles south to Mexico to avoid EPA emissions restrictions and fines. Below is a Stakeholder Analysis of each of the two possible decisions....
    1,126 Words | 4 Pages
  • Benihana Simulation Analysis - 1349 Words
    Benihana Simulation Analysis Harvard Business Publishing has created a computer simulation to replicate the operations management decisions facing Benihana. Benihana is a teppanyaki style restaurant franchise that focuses on bringing a theatrical dinning experience to its patrons. The layout of the restaurant consists of two seating areas: the bar and the dining area. The goal of this simulation is to maximize utilization, throughput time and the nightly profit using different batching, bar...
    1,349 Words | 5 Pages
  • Business Proposal - 1259 Words
    Business Proposal Melissa Wojciehowski ECO561 March 14, 2013 Ed Hartman Business Proposal Thomas Money Service (TMS) Inc. opened its doors in 1940 with the primary purpose of supplying the average household with loans for everyday needs. Since its origination, the company’s success has spawned an expansion including business loans, business acquisition financing, and commercial real estate loans. In 1946 Thomas merged with Future Growth Inc., an equipment financing company. The merger...
    1,259 Words | 4 Pages
  • Dan Apple - 954 Words
    Nguyễn Hà Dân – SB0768 MSSV:SB60543Ho Hoa Binh la sieu di ngua, Ban gai cu cua Hoang Anh chim lonhahahahahaha Find the two lines that are tangent to y = x2- 2x+1 and pass through the point (5,7). Call (d) is the equation of the tangent to y = x2- 2x+1, pass through the point (5,7) and have slope k y – y0 = k(x – x0) y – 7 = k(x – 5) y = kx – k5 + 7 we slove system of equations The two lines that are tangent is: y=8x – 47 y=2x – 17 Find limx→1x-1x2+3-2 3. The...
    954 Words | 4 Pages
  • EGT Task 1 - 547 Words
    Marginal Analysis in a Monopolistically Competitive Market Structure EGT1 Task 1 Abstract Company A is a producer of widgets in a monopolistically competitive market structure. It is projected that as more widgets are sold, Company A must offer a discount on each one to ensure adequate demand. Due to limited supplies and the cost of equipment maintenance the cost will rise as more widgets are produced. Revenue and cost at different output levels for the year: Task A. Profit...
    547 Words | 2 Pages
  • Egt1 Task 1 - 694 Words
    Marginal Analysis Economics & Global Business Applications, EGT 1, Task 1 A. Explanation of profit maximization The total revenue, TR, is the overall amount of all sources of a business’s income. It consists of total sales or profit, over a period of time. The TR can be calculated by taking the price and multiplying it by the quantity. For example, if a business decides to retail another product and the total revenue does increase, thus the marginal revenue would be greater than...
    694 Words | 2 Pages
  • Speadsheet Modeling & Decision Analysis 5e: Chapter 3 Solutions
    Chapter 3 Modeling & Solving LP Problems In A Spreadsheet 1. In general, it does not matter what is placed in a variable (changing) cell. Ultimately, Solver will determine the optimal values for these cells. If the model builder places formulas in changing cells, Solver will replace the formulas with numeric constants representing the optimal values of the decision variables. An exception to this general principle is found in Chapter 8 where, when solving nonlinear programming problems,...
    4,511 Words | 20 Pages
  • Property Preservation Proposal - 1443 Words
    Entrepreneurship Project proposal: “Property preservation” Section AB (MBA 3rd) Submitted to: Sir Shabeer Haider Submitted by: Marium Liaqat 10012720-006 Gull Afshan 10012720-004 Shumaila bano 10012720-029 Anum Khalid 09041020-018...
    1,443 Words | 6 Pages
  • Sales and Inventory System - 2277 Words
    MODULE # 1 THE BUSINESS AND ORGANIZATION Attributes of the term ‘Business’ Business has been defined as an organization of the people with varied skills, which uses property or talents, to produce goods or services, which can be sold to others for more than their costs. Or it may be considered as the system through which economic activity is organized and directed by those who seek to make a profit. Business includes lawful activity carried on continuously, which involves buying and...
    2,277 Words | 9 Pages
  • Sport Obermeyer Case - 2028 Words
    Managing risk in global operations under highly uncertain demand requires a heavy reliance on accurate forecasting. Sport Obermeyer, Ltd is in the business of manufacturing skiwear which includes short life cycle items due to their short selling season and dependence on trends in fashion. Each year Sport Obermeyer is challenged with matching supply to demand because production must be forecasted more than one year ahead of the expected selling season. These forecasts determine how much Sport...
    2,028 Words | 6 Pages
  • Egt Task 1 - 297 Words
    Profit maximization from the total revenue to total cost approach is at the point of the largest difference between total revenue and total cost. Profit maximization from the marginal revenue to marginal cost approach is where marginal revenue equals marginal cost. The calculation used to determine marginal revenue is the change in total revenue divided by the change in quantity. In this scenario, marginal revenue decreases by $10 at every additional increment of widget production. The...
    297 Words | 1 Page
  • Budgeting Is Useless on Managers
    I disagree that budgeting is an unnecessary burden on many managers to a large extent. This is because budgeting provides an opportunity to reevaluate existing activities and evaluate new ones. Compel managers to think ahead and estimates of unit and sales during operating period as well as selling expenses, so as to estimate the profit target. Once the budget is set, region, product groups and/or account types can break it down. Also, budgeting talks about the optimum profitability in a given...
    475 Words | 2 Pages
  • Assignment 2 - 441 Words
    The three products/variables in this problem that must be considered for purchase are: x1: Pizza Slices x2: Hot Dogs x3: Barbeque Sandwiches The objective is for Julia to maximize profits. Julia’s goal is to earn a profit of at least $1,000.00 after each game. Profit = Sell – Cost Profit Function: Z = 0.75(X1) + 1.05(X2) + 1.35(X3) Constraints and Cost: The maximum amount of funds available for purchase is $1500.00 Cost per pizza slice = $0.75 because Julia purchases each pizza for...
    441 Words | 2 Pages
  • EGT 1 Task 1
    A. Total revenue is the amount of all the sources of the company’s income. The total revenue consists of the total profit over a period of time. The total revenue is calculated by taking the price of the widget and multiplying it by the quantity produced. For Example, the marginal value would be greater if the company made one more widget and the total revenue increased. There would be no changes in revenue if the company decided to sell another widget and the marginal revenue was zero....
    518 Words | 2 Pages
  • Eco/561 Business Proposal
    busin Business Proposal Ira Johnson, Jr. ECO/561 Economics November 19, 2012 Dr. Caryn Callahan Business Proposal In an effort to better serve the CVS Pharmacy consumer base, the need to offer a wider variety of prescription medication selections and options system-wide. In this proposal, assumptions about the elasticity of demand and the market structure for these medications and expanded services will be included. Additionally, how the expansion will increase revenues will be...
    1,640 Words | 5 Pages
  • Henry Clements Car rental
     Henry Clements Car Rental Agency Case Study Embry-Riddle Aeronautical University Henry Clements Car Rental Agency Case Study The purpose of this case study is to determine, utilizing quantitative methods, the recommendations that should be made to Henry Clements in regards to forecasting to help improve his business’ performance. Table 1 3 Month Data Week 1 2 3 4 5 6 7 8 9 10 11 12 Demand 126 200 243 167 132 211 243 1667 131 208 251 171 Table 2...
    453 Words | 4 Pages
  • Freemark Abbey Winery - 857 Words
    Case 21 Freemark Abbey Winery Freemark Abbey Winery was established by the members of partnership. William Jaeger is one of the member own the company. It is located in St. Helena, California in the northern Napa Valley where the winery can produce the best grape quality. Each year Freemark Abbey can produce 25,000 cases of wine bottled and there is 1000 cases of Riesling. (12 bottles of wine in each case) Jaeger needs to make a decision to maximize the profit and minimize the loss...
    857 Words | 3 Pages
  • Egt1 for Western Governors - 384 Words
    Marginal revenue is the amount added to total revenue by the sale of one more unit, which is equal to the change in total revenue divided by the change in quantity of the units sold. In a purely competitive market marginal revenue is equal to the price of the unit sold. In a pure monopoly marginal cost is always less than the price of the unit. Marginal cost is the additional cost of production of one extra unit. It is equal to the change in total cost divided by the change in output. In the...
    384 Words | 2 Pages
  • Business Aims and Objectives - 625 Words
    Business Organisations Dear James, An aim is something they want to achieve. These can be long or short term plans, probably over the next three to five years. Businesses will probably want to focus on one or more of the following areas; profit and profit maximisation, survival, break even, growth, market share, service provision, develop their relationship with other businesses. SMART objectives is a mnemonic to guide people when they set objectives, often called Key Performance...
    625 Words | 3 Pages

All Profit maximization Essays