To stay profitable, sellers must receive minimum prices that “cover” their marginal costs (McConnell et al., 2009). If selling a particular service generates more revenue than what it costs then sell it, if not then don’t. Pricing and Non-Pricing Strategies Pricing strategy is how a business depends on how to maximize profits. According to (McConnell et al., 2009) not all sellers must create or accept a “one-for-all” price. Most firms have “market power” or “pricing power” that allows them to set their services prices in their best interests.
Disclaimer: This Essay is not in proper MLA Format. I don't believe that I should spend my money buying something that I don't want. There are cars that I love that came out in the late 1990's when I was a kid. Now that I am older and need to rely on a vehicle for commute to work, most folks around me say stuff like "why would you want to buy a car with over 120k mi. on it?"
Roberts sees a real future for this business because many people have the thrill and the finance to restore his/her old antique vehicle but do not have the time to do so. This new business may fit well along the other three businesses as all of these businesses can be offered as an all for one package deal. For example, restoring an old vehicle requires replacing parts that are not working properly; and after finishing the interior, the vehicle could be repainted to look brand new. These businesses complement each other as RASAS already has two part stores and a body/paint shop. This new vintage car restoration business would be categorized into two areas: Parts Broker and Information and Restoration Centre.
Caledonia Products Integrative Problem FIN/370 March 25, 2013 Caledonia Products Integrative Problem 1. Why should Caledonia focus on project free cash flows as opposed to the accounting profits earned by the project when analyzing whether to undertake the project? Caledonia should focus on project free cash flows because the businesses can reinvest cash flows. Caledonia interest lies in incremental cash flows. Incremental cash flows increase the value from the organization because they are projects marginal benefits.
The main focus of the company should be on the incremental cash flow because this holds a marginal benefit from the project. Depreciation is qualified as an expense: therefore, and the larger the depreciation the larger the expense. From the accounting profits point the profit would be much lower than on the free cash flow. 2. What are the incremental cash flows for the project in years 1 through 5 and how do these cash flows differ from accounting profits or earnings?
Individual financial gain determines the price for oligopolies. These firms find non price competition to keep from having to change the price of their products. The output of each product must be maximized to see a true profit which is
People Make Decisions University Of Phoenix May 2, 2012 Robert Stack • Briefly explain the principles of individual decision-making. The principles of individual decision-making are as follows: Rational people- Rational people weigh out their benefits and cost of each of their goals. Then they use choose the action that the benefits would outweigh the cost. People respond to economic incentives- Economists emphasize that consumers and firms consistently respond to economic incentives. Optimal decisions are made at the margin: Economists use the word marginal to mean “extra” or “additional.” Economists reason that the optimal decision is to continue any activity up to the point where the margin benefit equals the marginal cost.
So that I don’t think in the mind set of I shouldn’t be spending this much and how some car companies don’t look how much a car will cost you in the long run of having it. Which all are some of the parts that matter in the supply and demand of buying a new car. There are many other factors that play into it to like for instance a lot of car makers make their money by the business demand for the car. For instance like police cars and taxis and many other companies that provide a vehicle. The next thing that plays a part is the real income that car buyers have.
Positive incentives on the other hand leave you better off financially and socially. Positive monetary incentives include coupons, sales, discounts and interest earned on investment accounts (Econedlink, 2013). Positive moral and social incentives would include helping others by donating blood, or giving funds to a charity to assist the less fortunate. Both negative and positive incentives motivate the behavior of people. A great example of an economic incentive that effects the monetary and the moral betterment of people would be the Hybrid Tax Credit.
A country can be a capital (or labor)-abundant nations and labor (or capital)-scarce nations which consider their comparative advantage in technologies, input productivity, and wages of labor. Free trade can bring a lot of advantage to us; however, it does not apply in real world. Tariff and non-tariff are the tools that use to trade protection or prevent the economy from undergoing adjustment during economic stagnation. Although tariff and other restriction can concede the economic losses and using resource with less efficiency, but protectionism argue that non-economic benefit such as a national security can more than offset those economic losses. Normally trade protection is use to secure domestic industry and labor union’s economy welfare.