Total revenue equals price time’s quantity. It reflects total receipts obtained from selling a certain output or quantity of goods. Total costs is different it’s equal to fixed costs and variable costs. Fixed costs include building and equipment costs, regulatory fees and salaried personnel and remain stable, especially in the short term, but may vary with a longer time horizon. 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).
EGT1 TASK 1 McConnell, Brue and Flynn define Marginal Revenue as “the change in total revenue that results from the sale of one additional unit of a firm’s product; equal to the change in total revenue divided by the change in the quantity of the product sold.” (McConnell, Brue and Flynn, 2012). When we look at the relationship between total revenue and marginal revenue we can see that it is purely a mathematical relationship. The formula that is used to determine Total Revenue is the following; Total Revenue = Price X Quantity, (TR = P X Q). McConnell, Brue and Flynn also define Marginal Cost they state that it is “the extra cost of producing one more unit of output; equal to the change in total cost divided by the change in output.” (McConnell, Brue and Flynn 2011). The marginal cost and total cost is directly related to each other.
All else being equal, cash received sooner is better. • The timing of cash flows a firm can generate is very important in determing the value of a firm. All else being equal, cash received later is better. • The timing of cash flows a firm can generate is irrelevant in determing the value of a firm. FCF= sales revenues-operating costs-Operation
It helps us to understand the relationship between the usage of money and the value of returns it provides from a particular venture or avenue based on the time it would take for providing the return and the future value of the return. Opportunity cost is economic decisions based on a limited resources i.e time or money. Opportunity cost is defined as the next best choice available for a person. Opportunity costs are not restricted to monetary costs only. Trade-off is the form of either buying less or a lesser quality item in order to purchase more or a greater quality item.
True B. False For dependent samples, we assume the distribution of the paired differences between the populations has a mean greater than 0. A. True B. False For independent populations, the standard deviation of the distribution of the differences has a variance equal to the sum of the two individual variances.
Chapter 3 Risk Identification and Measurement I. Multiple Choice 1. A listing of a random variable’s possible outcomes and the respective probabilities of those outcomes is called the: a. expected value b. standard deviation c. probability distribution d. correlation Answer: c Type: K 2. Multiplying each possible outcome of a random variable by its probability of occurrence, and then adding up these results will be equal to the random variable’s: a. expected value b. standard deviation c. probability distribution d. correlation Answer: a Type: K 3. The graph above depicts the probability distributions for risks A and B.
Two disadvantages to automation are that it costs more and it is not easily changed. 6. A products margin is determined by subtracting its manufacturing cots (labor and material) from its price. Logically, higher prices and lower labor and material costs result in higher margins. Keeping in mind the customer buying criteria, how would you increase margins for a low end product?
5. b = r(sy/sx). (On the regression line, a change of one standard deviation in x corresponds to a change of standard deviation y. 6. a = y - bx. 7. The slope b is the approximate change in y when x increases by 1.
Reduce redundancy and maximize demonstrably proven project outcomes to provide the consumer with a superior product which is durable, easy to maintain, effective, useful and simple to operate, and does not require significant financial outlay toward proprietary elements when equivalent yet more economical alternatives are as readily available. An effective competing alternative is to produce a significantly less durable product with minimal to no maintenance, with comparable output and productive effect,
We also discussed elastic and inelastic and I learned there are two kinds that affect pricing. First is "price elasticity of demand [which] is the percentage change in quantity demanded divided by the percentage change in price [and] price elasticity of supply is the percentage change in quantity supplied divided by the percentage change in price" (Colander, 2010, p. 154). Applying these to real world scenarios and applications aided in understanding the