Marginal cost

large city, recently received a restored mansion as a gift from an appreciative patient. The board of directors decided to remodel the mansion and use it as recuperative quarters for patients willing to pay a premium for luxurious accommodations. The cost to the hospital of using the mansion includes Selected Answer: d. both b and c Question 2 0 out of 0.5 points Which of the following statements is false? Selected Answer: c. d If economic profit is positive, accounting

revenue from increased sales Correct Answer: interest payments on the firm's loan. Response Feedback: Is this fixed cost that the firm has to pay regardless of advertising? • Question 2 0 out of 1 points If marginal cost is equal to average total cost, then Answer Selected Answer: a. marginal cost is minimized. Correct Answer: b. average total cost is minimized. • Question 3 0 out of 1 points A restaurant currently has two cooks and ten waiters. Cooks earn $10

economy two markets that will not fail in recession are discount retail food and medicine because people need both to survive (Viswanathan, 2009). According to AAA (2012), the national average for gas is currently $3.39 per gallon. The cost of gas coupled with the cost of prescriptions and groceries create a huge issue in elderly, disabled, and unfortunate

Day Ahead (DA) Market and Real Time (RT) Market. Day Ahead Markets [52] are based on bids and auctions. Contracts are made well in advance based on energy price bids. DA auctions are performed based on complex calculations considering the generation cost as well system constraints. Seller and buyer negotiate for prices until bids are accepted and trade is accepted. Each auction are specified by a set of conditions: bidding rules, bid acceptance rules, and settlement rules. Major portion of power trade

Assignment 2: Genevieve Blanch QUESTION 1. Externalities in this situation exist where the Government, Country or Private Organisation decides to launch a new satellite causing costs and benefits to other members of society which do not impact on the G,C or PO. Such externalities include: NEGATIVE (Costs to other members of society) Hazard to the useful working satellites that surround Earth. Threat to our dependence for communications, broadcasting and surveillance.

revenue equation is known as the marginal revenue (MR) and it represents the change in revenue by increasing the sales of a product (pblpathways.com). Marginal cost (MC) is the additional cost added to increase the quantity of a product (pblpathways.com). Ideally, the marginal cost and the marginal revenue will add to a difference of zero because a company wants to maximize the amount of products they sale to maximize the revenue without adding an outstanding additional cost to produce this product.

that it can increase labor productivity and, therefore, net revenue by reducing air pollution in its mines. It estimates that the marginal cost function for reducing pollution by installing additional capital equipment is MC = 40P where P represents a reduction of one unit of pollution in the mines. It also feels that for every unit of pollution reduction the marginal increase in revenue (MR) is MR = 1,000 - 10P How much pollution reduction should Appalachian Coal Mining undertake? Set MC = MR

direct say on what the firm charges on a given product; however, the firm can control the quantity supply to the market. According to Slack & Lewis, success or failure depends on how a pure competitive market lies, and how a company controls production cost and portrays it brand. (Slack & Lewis, 2003) When researching the capacity of output, one significant concern is the income the firm will gain by manufacturing the products. The organization must first develop ways to carry out the operation. This

also due to the relatively higher elasticity of demand in low-income countries.) Sold in the market at a uniform price, the total revenue (price x quantity) for the drug companies is thus maximized. The surplus of revenue over marginal manufacturing costs would fund the sunk costs (of R&D and factory building) and any profits. Rationale for Lower Prices – Price Discrimination 9 However, with mounting pressures from the public to provide greater access to the drugs especially to the lower-income

farm and earning an accounting profit of $100 per acre. However, if he raised soybeans, he could earn $200 per acre. Is he currently earning an economic profit? Why or why not? 2. Determine whether each of the following is an explicit cost or an implicit cost: a) Payments for labor purchased in the labor market b) A firm’suse of a warehouse that it owns and could rent to another firm c) The wages that owners could earn if they did not work for themselves 3. What are economies of scale