As the time horizon increases, variable costs rely less on existing factors and restrictions and therefore will begin behaving differently which will in turn affect the cost of production (Wright, 2007). The second way a firm that’s into profit maximization can decide its greatest level of output is by way of the marginal revenue -- marginal cost method. This is done by subtracting the marginal cost from the marginal revenue that a product generates. Using marginal cost and marginal revenue as the bases, profit maximization will be obtained at the point when marginal revenue is equal to marginal cost. If the marginal revenue is greater than marginal cost this would be when a profit maximizing firm would need to increase production until marginal revenue is equal to marginal cost.
"Today's kanban research is the modern equivalent of yesterday's economic order quantity research." Do you agree? Explain your answer. 2. There is considerable evidence that getting the correct operating conditions is more important than the choice between MRP, kanban, or reorder point methods in the MPC system.
B) maximum opportunity cost combinations of goods and services. C) boundary between the combinations of goods and services that can be produced and the combinations that cannot be produced when technology is changing. D) boundary between the combinations of goods and services that can be produced and the combinations that cannot be produced, given the available factors of production and the state of technology. E) maximum output that can be produced at an opportunity cost of zero. 5) Moving from one point to another on a production possibilities frontier
Their total revenue will be subtracted from their total expense which will be their net income. The net income and revenue will be times by 100 will be the profit margin. The net income plus depreciation will equal their cash flow. D. Suppose the change had halved, rather than doubled, the firm’s depreciation expense. Now, what would be the impact on net income, total profit margin, and cash flow?
MULTIPLE CHOICE QUESTIONS (2 POINTS EACH) 9. For a typical competitive firm, the price in the long run equilibrium will tend to: A. be greater than average cost B. be equal to average cost C. be less than average cost D. intermediate 10. Which of the following is NOT a problem with monopoly? A. The price does not signal true cost.
Graph the relationship between Y and K holding L fixed at its current value. What is the MPK? Does MPK diminish? b. Graph the relationship between Y and L holding K fixed at its current value. Find the MPL when L goes up from 100 to 110.
Businesses that take a substantial amount of time to make of sell a product will need a higher level of working capital. It is important for businesses to work out the right level of working capital you will need. If the working capital is too high, the business has surplus funds which are not earning a return; and low may indicate that the business is facing financial difficulties. From the scenario, analyze TFC’s cash budget to determine key methods in which the budget may be optimized (e.g., by renegotiating terms and conditions on some of its payables, etc.). If you believe that there is room for improvement, recommend key strategies for TFC to use in order to optimize its cash budget.
Capacity utilization ‘u’ is the average fraction of the server pool capacity that is busy processing customers, i.e. u= R/Rp If Rp > Ri, i.e. processing capacity is sufficient to meet the demand for the service. In this scenario, the throughput rate is the same as the input rate ( R =Ri) and the capacity utilization ‘u’ = Ri/Rp is less than 1 so that some of the available capacity is unutilized. If on the other hand the inflow rate exceeds the processing rate Ri>=Rp then R=Rp and u=1 so the resource pool is constantly busy processing customers.
Building an organization by grouping jobs into work units and allocating resources C. Identifying business functions and mobilizing leaders D. Being flexible and responsive towards customer needs and the competitive environment Correct! The correct answer is: D. A dynamic organization is, “flexible and adaptive, particularly in response to competitive threats and customer needs” (Bateman & Snell, 2011, p.16). 15. For today’s managers, the organizing function requires a higher focus on which of the following? A.
The reason being as more of a certain good is consumed, it will begin to provide less utility to the consumer. This means that and extra $1 income would be of more worth to a low income earner than to a high income earner. This suggests that a more equal distribution of income will be beneficial to the total utility. Unfortunately, it is extremely to gain an accurate assessment of relative