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).
| Countries with fragmented retail systems tend to have short channels of distribution | B. | The more fragmented the retail system, the less expensive it is for a firm to make contact with each individual retailer | C. | Fragmented retail systems tend to promote the growth of wholesalers to serve retailers | D. | When the retail sector is very fragmented, it makes sense for the firm to deal directly with retailers | | | 9. What is the basic message of the theory of comparative advantage? | | | Student Response | A. | Countries are similar in their ability to produce goods efficiently | B.
A higher sales revenue will occur for etisalat which means the income the company receives from business activities, usually happen from sale of goods and services to customers. Etisalat will also have more opportunities to invest in upcoming projects. If the opposite occurs and etisalat has low availability and higher costs it would mean, people spend less on their goods/services which would mean there’s a low
A project with short payback period can improve the liquidity position of the business quickly. The payback period is important for the firms for which liquidity is very important. Explain one to two (1-2) investment gains that the company could achieve by outsourcing the central office functions. Focus on the company’s potential to reduce overhead and still maintain or even improve the quality of its products Discuss one (1) capital budgeting method that would be most effective for the company. Net Present Value, or NPV, combines two concepts of value.
Monopoly is where only one company is providing a good and or service. Businesses may maximize profit in each market type by agreeing upon a lay down price. Perhaps businesses cannot agree upon a set price then the price is going to be above marginal cost. If the company is in competition with other companies in the same market, making decisions about prices, how they advertise, output, etc, can influence the profits of every, if not all companies in the same market. This is where management gets involved to ensure the company that their strategic way of thinking and planning can and will allow the company to gain
The switch is easy and cost-efficient. c. the ratio of fixed to variable costs is high: Inventec has to reduce prices to utilize installed capacity. (e.g. its new manufacturing compound in Pudong, Shanghai) d. OEMs own the distribution channel and make the rules. 2.
Midas Week 1 Assignment BUS 644 Midas This paper will address several issues that are caused in the business operational efficiencies and the various solutions to minimize those issues in business operations. Business operating efficiency is nothing but the ratio between the input to run a business operation and the output gained from the business. In order to improve the operational efficiencies, it is very important that output or productivity surpasses the input. According to (Vonderembse & White, 2013), “the productivity increases, organizations can do the same work with less effort or can do more work with same effort. Increase in the productivity reduce costs, lower price and provide a basis for competing in a world markets.
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?
Piyatida Choomchaiyo Business HL Ms. Brennan 12/02/11 Case Study – Bodyline a) Supply and demand is one of the most fundamental concepts of economics that is also very useful to pricing in business. Demand refers to how much (quantity) of a product or service is desired by buyers. The quantity demanded is the amount of a product that people are willing to buy at a certain price. Supply represents how much the market can offer (price). The correlation between price and how much good/service is supplied to the market is known as supply relationship.
Week 2 Learning Team Reflection Team A agrees, this week introduced new concepts and understanding. Week two the main objectives we focused on were production and cost analysis. We discuss the relationship between the number of inputs and the law of diminishing marginal productivity, and analyze the relationship between productivity and the cost of production. We collectively discussed the objectives and illustrated the topic we feel comfortable with, any topics we struggled with and how these topics relate to application in our field. Colander (2010) explains the role of the firm in production and how firms strive to maximize profits through maximizing productivity and minimizing costs.