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Find the integral of the marginal cost.
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Relationship between marginal social cost and marginal private cost?
The Marginal Social Cost (MSC) is the Marginal Private Cost (MPC) + the Marginal External Cost (MEC). As an example, a pulp and paper mill might produce paper using a supply curve of MPC = 4Q. The mill pumps its effluent into a river. The effluent then travels downstream and a village that gets its water form the river has to install purification systems. The installation of purification is an external cost borne by the village but attributable to the mill. Now if the mill took into account his external cost and factored it into its cost structure, thereby not allowing raw effluent to get into the river and saving the village the cost of installing purification systems, the company might find that MSC = 6Q (MEC = 2Q). No matter what the Demand function equals, the Equilibrium just went to a higher cost and lower output.
Profit maximization theory?
the fact that total profit reaches its maximum point where marginal revenue equals marginal cost.Contents[show] 1 Basic definitions2 Total revenue - total cost perspective3 Marginal revenue-marginal cost perspective4 Case in which maximizing revenue is equivalent5 Changes in total costs and profit maximization6 Markup pricing7 Marginal product of labor, marginal revenue product of labor, and profit maximization8 See also9 Notes10 References11 External linksBasic definitionsAny costs incurred by a firm may be classed into two groups: fixed costs and variable costs. Fixed costs, which occur only in the short run, are incurred by the business at any level of output, including zero output. These may include equipment maintenance, rent, wages of employees whose numbers cannot be increased or decreased in the short run, and general upkeep. Variable costs change with the level of output, increasing as more product is generated. Materials consumed during production often have the largest impact on this category, which also includes the wages of employees who can be hired and laid off in the span of time (long run or short run) under consideration. Fixed cost and variable cost, combined, equal total cost. Revenue is the amount of money that a company receives from its normal business activities, usually from the sale of goods and services (as opposed to monies from security sales such as equity shares or debt issuances).Marginal cost and revenue, depending on whether the calculus approach is taken or not, are defined as either the change in cost or revenue as each additional unit is produced, or the derivative of cost or revenue with respect to the quantity of output. For instance, taking the first definition, if it costs a firm 400 USD to produce 5 units and 480 USD to produce 6, the marginal cost of the sixth unit is 80 dollars.Total revenue - total cost perspectiveProfit Maximization - The Totals Approach To obtain the profit maximising output quantity, we start by recognizing that profit is equal to total revenue (TR) minus total cost (TC). Given a table of costs and revenues at each quantity, we can either compute equations or plot the data directly on a graph. The profit-maximizing output is the one at which this difference reaches its maximum. In the accompanying diagram, the linear total revenue curve represents the case in which the firm is a perfect competitor in the goods market, and thus cannot set its own selling price. The profit-maximizing output level is represented as the one at which total revenue is the height of C and total cost is the height of B; the maximal profit is measured as CB. This output level is also the one at which the total profit curve is at its maximum.If, contrary to what is assumed in the graph, the firm is not a perfect competitor in the output market, the price to sell the product at can be read off the demand curve at the firm's optimal quantity of output.Marginal revenue-marginal cost perspectiveProfit maximization using the marginal approach An alternative perspective relies on the relationship that, for each unit sold, marginal profit (Mπ) equals marginal revenue (MR) minus marginal cost (MC). Then, if marginal revenue is greater than marginal cost at some level of output, marginal profit is positive and thus a greater quantity should be produced, and if marginal revenue is less than marginal cost, marginal profit is negative and a lesser quantity should be produced. At the output level at which marginal revenue equals marginal cost, marginal profit is zero and this quantity is the one that maximizes profit.[1] Since total profit increases when marginal profit is positive and total profit decreases when marginal profit is negative, it must reach a maximum where marginal profit is zero - or where marginal cost equals marginal revenue - and where lower or higher output levels give lower profit levels.[1] In calculus terms, the correct intersection of MC and MR will occur when:[1]The intersection of MR and MC is shown in the next diagram as point A. If the industry is perfectly competitive (as is assumed in the diagram), the firm faces a demand curve (D) that is identical to its marginal revenue curve (MR), and this is a horizontal line at a price determined by industry supply and demand. Average total costs are represented by curve ATC. Total economic profit are represented by the area of the rectangle PABC. The optimum quantity (Q) is the same as the optimum quantity in the first diagram.If the firm is operating in a non-competitive market, changes would have to be made to the diagrams. For example, the marginal revenue curve would have a negative gradient, due to the overall market demand curve. In a non-competitive environment, more complicated profit maximization solutions involve the use of game theory.Case in which maximizing revenue is equivalentIn some cases a firm's demand and cost conditions are such that marginal profits are greater than zero for all levels of production up to a certain maximum.[2] In this case marginal profit plunges to zero immediately after that maximum is reached; hence the Mπ = 0 rule implies that output should be produced at the maximum level, which also happens to be the level that maximizes revenue.[2] In other words the profit maximizing quantity and price can be determined by setting marginal revenue equal to zero, which occurs at the maximal level of output. Marginal revenue equals zero when the total revenue curve has reached its maximum value. An example would be a scheduled airline flight. The marginal costs of flying one more passenger on the flight are negligible until all the seats are filled. The airline would maximize profit by filling all the seats. The airline would determine the conditions by maximizing revenues. Changes in total costs and profit maximizationA firm maximizes profit by operating where marginal revenue equal marginal costs. A change in fixed costs has no effect on the profit maximizing output or price.[3] The firm merely treats short term fixed costs as sunk costs and continues to operate as before.[4] This can be confirmed graphically. Using the diagram illustrating the total cost-total revenue perspective, the firm maximizes profit at the point where the slopes of the total cost line and total revenue line are equal.[2] An increase in fixed cost would cause the total cost curve to shift up by the amount of the change.[2] There would be no effect on the total revenue curve or the shape of the total cost curve. Consequently, the profit maximizing point would remain the same. This point can also be illustrated using the diagram for the marginal revenue-marginal cost perspective. A change in fixed cost would have no effect on the position or shape of these curves.[2] Markup pricingIn addition to using methods to determine a firm's optimal level of output, a firm that is not perfectly competitive can equivalently set price to maximize profit (since setting price along a given demand curve involves picking a preferred point on that curve, which is equivalent to picking a preferred quantity to produce and sell). The profit maximization conditions can be expressed in a "more easily applicable" form or rule of thumb than the above perspectives use.[5] The first step is to rewrite the expression for marginal revenue as MR = ∆TR/∆Q =(P∆Q+Q∆P)/∆Q=P+Q∆P/∆Q, where P and Q refer to the midpoints between the old and new values of price and quantity respectively.[5] The marginal revenue from an "incremental unit of quantity" has two parts: first, the revenue the firm gains from selling the additional units or P∆Q. The additional units are called the marginal units.[6] Producing one extra unit and selling it at price P brings in revenue of P. Moreover, one must consider "the revenue the firm loses on the units it could have sold at the higher price"[6]-that is, if the price of all units had not been pulled down by the effort to sell more units. These units that have lost revenue are called the infra-marginal units.[6] That is, selling the extra unit results in a small drop in price which reduces the revenue for all units sold by the amount Q(∆P/∆Q). Thus MR = P + Q(∆P/∆Q) = P +P (Q/P)((∆P/∆Q) = P + P/(PED), where PED is the price elasticity of demand characterizing the demand curve of the firms' customers, which is negative. Then setting MC = MR gives MC = P + P/PED so (P - MC)/P = - 1/PED and P = MC/[1 + (1/PED)]. Thus the optimal markup rule is:(P - MC)/P = 1/ (- PED)orP = [PED/(1 + PED)]×MC.[7][8] In words, the rule is that the size of the markup is inversely related to the price elasticity of demand for the good.[7]The optimal markup rule also implies that a non-competitive firm will produce on the elastic region of its market demand curve. Marginal cost is positive. The term PED/(1+PED) would be positive so P>0 only if PED is between -1 and -∝ -that is, if demand is elastic at that level of output.[9] The intuition behind this result is that, if demand is inelastic at some value Q1 then a decrease in Q would increase P more than proportionately, thereby increasing revenue PQ; since lower Q would also lead to lower total cost, profit would go up due to the combination of increased revenue and decreased cost. Thus Q1 does not give the highest possible profit.Marginal product of labor, marginal revenue product of labor, and profit maximizationThe general rule is that firm maximizes profit by producing that quantity of output where marginal revenue equals marginal costs. The profit maximization issue can also be approached from the input side. That is, what is the profit maximizing usage of the variable input? [10] To maximize profit the firm should increase usage of the input "up to the point where the input's marginal revenue product equals its marginal costs".[11] So mathematically the profit maximizing rule is MRPL = MCL, where the subscript L refers to the commonly assumed variable input, labor. The marginal revenue product is the change in total revenue per unit change in the variable input. That is MRPL = ∆TR/∆L. MRPL is the product of marginal revenue and the marginal product of labor or MRPL = MR x MPL.
How does monopolists maximize profits?
A monopolist maximizes profits by choosing an output such that marginal revenue equals marginal cost. This is in contrast to a perfect competition where firms maximizes profits at price equal to marginal cost. Mathematically, the monopolist profit can be calculated as such: π = pq-cq, where π is the profits, p is the price, c is the marginal cost and q is the quantity The price reflects the inverse demand function; p=a-bq, where a is a constant and b is the slope (e.g. p=100-2q) If we insert this expression into the profit function it can be written as follows: π = (a-bq)q-cq Taking first order conditions (The derivative of π with respect to q) and put the condition equal to zero (Finding the stationary point (maximum) for the function): dπ/dq= 0 --> -bq+a-bq-c=0 Rewriting the expression: a-2bq=c, where a-2bq is the marginal revenue, and c is the marginal cost Solving this expression with respect to q: q=(a-c)/2b This is the optimal output of the monopolist, to find the price we insert this expression inte to expression for p we had earlier: p=a-b(a-c)/2b Rewritten: p=(a+c)/2 This is the optimal price of the monopolist. To find the profit we now insert the expression for optimal output and optimal price into the profit expression: π = (a-bq)q-cq --> π = ((a+c)/2-c)(a-c)/2b Simplifying and rewriting the expression we get: π = (a-c)^2/4b This might look a bit challenging if you are not used to working with algebra on general form, however, if you insert your specific numbers in the beginning it is quite straight forward.
The Equi-Marginal Principle can be applied to both consumption as well as production?
(b) Equi-marginal principle The equi-marginal principle was originally associated with consumption theory and the law is called 'the law of equi-marginal utility'. The law of equi-marginal utility states that a utility maximizing consumer distributes his consumption expenditure between various goods and services he/she consumes in such a way that the marginal utility derived from each unit of expenditure on various goods and services is the same. The pattern of consumer's expenditure maximizes a consumer's total utility. The law of equi-marginal principle has been applied to the allocation of resources between their alternative uses with a view to maximizing profit in case a firm carries out more than one business activity. This principle suggests that available resources (inputs) should be so allocated between the alternative options that the marginal productivity gain (MP) from the various activities are equalized. For example, suppose a firm has a total capital of Rs. 100 million which it has the option of spending on three projects, A, B, and C. Each of these projects requires a unit expenditure of Rs. 10 million. Suppose also that the marginal productivity schedule of each unit of expenditure on the three projects is given as shown in the following table. Units of Expenditure Marginal Productivity (MP) (Rs. 10 million) Project A Project B Project C 1st 501 403 354 2nd 452 305 306 3rd 357 208 209 4th 2010 10 15 5th 10 0 12 Going by the equi-marginal principle, the firm will allocate its total resource (Rs. 100 million) among the projects A, B and C in such a way that marginal product of each project is the same i.e., MpA = MPB = MPC. It can be seen from the above table that going, by this rule, the firm will spend 1st, 2nd, 7th, and 10th unit of finance on project A, 3rd, 5th, and 8th unit on Project B, and 4th, 6th, and 9th unit on project C. In all, it puts 4 units of its finances in project A, 3 units each in projects n and C. In other words, of the total finances of Rs. 100 million, a profit maximization firm would invest rs. 40 million in project A, Rs. 30 million each in projects B and C. This pattern of investment maximizes the form's productivity gains. No other pattern will ensure this objective. The equi-marginal principle suggests that a profit maximizing firms allocates MpA = MPB = MPC = … = MPN If cost of project (COP) varies from project to project, then resources are so allocated that MP per unit of COP is the same. That is, resources are are allocated in such proportions that The equi-marginal principle can be applied only where (i) firms have limited investible resources, (ii) resources have alternative uses, and (iii) the investment in various alternative uses is subject to diminishing marginal productivity or returns.
Does marginal cost equal average total cost in monopolestically competitive firm in long run?
No. Monopolistically competitive firms, by definition, invest in R&D to create product specialisation. R&D is a form of fixed-investment, so if the firm continually invests in R&D during all periods, then, in the long-run, AC cannot equal MC because FC/x will not approach 0 (assuming the firm constantly invests). If the firm ceases to invest at any point to remain specialised, then it will eventually approach MC = AC as x -> infinity in the long-run.
Does supply equal marginal cost?
Not that I know of. Average cost does - in the form of a labour market
Relationship between marginal social cost and marginal private cost?
The Marginal Social Cost (MSC) is the Marginal Private Cost (MPC) + the Marginal External Cost (MEC). As an example, a pulp and paper mill might produce paper using a supply curve of MPC = 4Q. The mill pumps its effluent into a river. The effluent then travels downstream and a village that gets its water form the river has to install purification systems. The installation of purification is an external cost borne by the village but attributable to the mill. Now if the mill took into account his external cost and factored it into its cost structure, thereby not allowing raw effluent to get into the river and saving the village the cost of installing purification systems, the company might find that MSC = 6Q (MEC = 2Q). No matter what the Demand function equals, the Equilibrium just went to a higher cost and lower output.
What is marginal as a noun?
The word 'marginal' is the adjective form of the noun margin.
Why are actual markets said to have high transaction costs?
Every firm's aim is to get more profit and revenue form their existing products.Behid that intention companies have to set high targets and convert their economical indicators.Major reasons behind that are;Profit MaximizationThe monopolist's profit maximizing level of output is found by equating its marginal revenue with its marginal cost, which is the same profit maximizing condition that a perfectly competitive firm uses to determine its equilibrium level of output. Indeed, the condition that marginal revenue equal marginal cost is used to determine the profit maximizing level of output of every firm, regardless of the market structure in which the firm is operating.Total Cost-Total Revenue MethodTo obtain the profit maximizing output quantity, we start by recognizing that profit is equal to total revenue minus total cost. Given a table of costs and revenues at each quantity, we can either compute equations or plot the data directly on a graph. Finding the profit-maximizing output is as simple as finding the output at which profit reaches its maximum.Marginal Cost-Marginal Revenue MethodIf total revenue and total cost figures are difficult to procure, this method may also be used. For each unit sold, marginal profit equals marginal revenue minus marginal cost. Then, if marginal revenue is greater than marginal cost, marginal profit is positive, and if marginal revenue is less than marginal cost, marginal profit is negative. When marginal revenue equals marginal cost, marginal profit is zero.And one major reason behind that isAn economic indicator (or business indicator) is a statistic about the economy. Economic indicators allow analysis of economic performance and predictions of future performance.Economic indicators include various indices, earnings reports, and economic summaries, such as unemployment, housing starts , Consumer Price Index (a measure for inflation), industrial production , bankruptcies, Gross Domestic Product, retail sales , stock market prices, and money supply changes.Economic indicators are primarily studied in a branch of macroeconomics called " business cycles". The leading business cycle dating committee in the United States of America is the National Bureau of Economic Research .The Bureau of Labor Statistics is the principal fact-finding agency for the U.S. government in the field of labor economics and statistics.These are the main reasons that actual markets have high their transaction costs.
Profit maximization theory?
the fact that total profit reaches its maximum point where marginal revenue equals marginal cost.Contents[show] 1 Basic definitions2 Total revenue - total cost perspective3 Marginal revenue-marginal cost perspective4 Case in which maximizing revenue is equivalent5 Changes in total costs and profit maximization6 Markup pricing7 Marginal product of labor, marginal revenue product of labor, and profit maximization8 See also9 Notes10 References11 External linksBasic definitionsAny costs incurred by a firm may be classed into two groups: fixed costs and variable costs. Fixed costs, which occur only in the short run, are incurred by the business at any level of output, including zero output. These may include equipment maintenance, rent, wages of employees whose numbers cannot be increased or decreased in the short run, and general upkeep. Variable costs change with the level of output, increasing as more product is generated. Materials consumed during production often have the largest impact on this category, which also includes the wages of employees who can be hired and laid off in the span of time (long run or short run) under consideration. Fixed cost and variable cost, combined, equal total cost. Revenue is the amount of money that a company receives from its normal business activities, usually from the sale of goods and services (as opposed to monies from security sales such as equity shares or debt issuances).Marginal cost and revenue, depending on whether the calculus approach is taken or not, are defined as either the change in cost or revenue as each additional unit is produced, or the derivative of cost or revenue with respect to the quantity of output. For instance, taking the first definition, if it costs a firm 400 USD to produce 5 units and 480 USD to produce 6, the marginal cost of the sixth unit is 80 dollars.Total revenue - total cost perspectiveProfit Maximization - The Totals Approach To obtain the profit maximising output quantity, we start by recognizing that profit is equal to total revenue (TR) minus total cost (TC). Given a table of costs and revenues at each quantity, we can either compute equations or plot the data directly on a graph. The profit-maximizing output is the one at which this difference reaches its maximum. In the accompanying diagram, the linear total revenue curve represents the case in which the firm is a perfect competitor in the goods market, and thus cannot set its own selling price. The profit-maximizing output level is represented as the one at which total revenue is the height of C and total cost is the height of B; the maximal profit is measured as CB. This output level is also the one at which the total profit curve is at its maximum.If, contrary to what is assumed in the graph, the firm is not a perfect competitor in the output market, the price to sell the product at can be read off the demand curve at the firm's optimal quantity of output.Marginal revenue-marginal cost perspectiveProfit maximization using the marginal approach An alternative perspective relies on the relationship that, for each unit sold, marginal profit (Mπ) equals marginal revenue (MR) minus marginal cost (MC). Then, if marginal revenue is greater than marginal cost at some level of output, marginal profit is positive and thus a greater quantity should be produced, and if marginal revenue is less than marginal cost, marginal profit is negative and a lesser quantity should be produced. At the output level at which marginal revenue equals marginal cost, marginal profit is zero and this quantity is the one that maximizes profit.[1] Since total profit increases when marginal profit is positive and total profit decreases when marginal profit is negative, it must reach a maximum where marginal profit is zero - or where marginal cost equals marginal revenue - and where lower or higher output levels give lower profit levels.[1] In calculus terms, the correct intersection of MC and MR will occur when:[1]The intersection of MR and MC is shown in the next diagram as point A. If the industry is perfectly competitive (as is assumed in the diagram), the firm faces a demand curve (D) that is identical to its marginal revenue curve (MR), and this is a horizontal line at a price determined by industry supply and demand. Average total costs are represented by curve ATC. Total economic profit are represented by the area of the rectangle PABC. The optimum quantity (Q) is the same as the optimum quantity in the first diagram.If the firm is operating in a non-competitive market, changes would have to be made to the diagrams. For example, the marginal revenue curve would have a negative gradient, due to the overall market demand curve. In a non-competitive environment, more complicated profit maximization solutions involve the use of game theory.Case in which maximizing revenue is equivalentIn some cases a firm's demand and cost conditions are such that marginal profits are greater than zero for all levels of production up to a certain maximum.[2] In this case marginal profit plunges to zero immediately after that maximum is reached; hence the Mπ = 0 rule implies that output should be produced at the maximum level, which also happens to be the level that maximizes revenue.[2] In other words the profit maximizing quantity and price can be determined by setting marginal revenue equal to zero, which occurs at the maximal level of output. Marginal revenue equals zero when the total revenue curve has reached its maximum value. An example would be a scheduled airline flight. The marginal costs of flying one more passenger on the flight are negligible until all the seats are filled. The airline would maximize profit by filling all the seats. The airline would determine the conditions by maximizing revenues. Changes in total costs and profit maximizationA firm maximizes profit by operating where marginal revenue equal marginal costs. A change in fixed costs has no effect on the profit maximizing output or price.[3] The firm merely treats short term fixed costs as sunk costs and continues to operate as before.[4] This can be confirmed graphically. Using the diagram illustrating the total cost-total revenue perspective, the firm maximizes profit at the point where the slopes of the total cost line and total revenue line are equal.[2] An increase in fixed cost would cause the total cost curve to shift up by the amount of the change.[2] There would be no effect on the total revenue curve or the shape of the total cost curve. Consequently, the profit maximizing point would remain the same. This point can also be illustrated using the diagram for the marginal revenue-marginal cost perspective. A change in fixed cost would have no effect on the position or shape of these curves.[2] Markup pricingIn addition to using methods to determine a firm's optimal level of output, a firm that is not perfectly competitive can equivalently set price to maximize profit (since setting price along a given demand curve involves picking a preferred point on that curve, which is equivalent to picking a preferred quantity to produce and sell). The profit maximization conditions can be expressed in a "more easily applicable" form or rule of thumb than the above perspectives use.[5] The first step is to rewrite the expression for marginal revenue as MR = ∆TR/∆Q =(P∆Q+Q∆P)/∆Q=P+Q∆P/∆Q, where P and Q refer to the midpoints between the old and new values of price and quantity respectively.[5] The marginal revenue from an "incremental unit of quantity" has two parts: first, the revenue the firm gains from selling the additional units or P∆Q. The additional units are called the marginal units.[6] Producing one extra unit and selling it at price P brings in revenue of P. Moreover, one must consider "the revenue the firm loses on the units it could have sold at the higher price"[6]-that is, if the price of all units had not been pulled down by the effort to sell more units. These units that have lost revenue are called the infra-marginal units.[6] That is, selling the extra unit results in a small drop in price which reduces the revenue for all units sold by the amount Q(∆P/∆Q). Thus MR = P + Q(∆P/∆Q) = P +P (Q/P)((∆P/∆Q) = P + P/(PED), where PED is the price elasticity of demand characterizing the demand curve of the firms' customers, which is negative. Then setting MC = MR gives MC = P + P/PED so (P - MC)/P = - 1/PED and P = MC/[1 + (1/PED)]. Thus the optimal markup rule is:(P - MC)/P = 1/ (- PED)orP = [PED/(1 + PED)]×MC.[7][8] In words, the rule is that the size of the markup is inversely related to the price elasticity of demand for the good.[7]The optimal markup rule also implies that a non-competitive firm will produce on the elastic region of its market demand curve. Marginal cost is positive. The term PED/(1+PED) would be positive so P>0 only if PED is between -1 and -∝ -that is, if demand is elastic at that level of output.[9] The intuition behind this result is that, if demand is inelastic at some value Q1 then a decrease in Q would increase P more than proportionately, thereby increasing revenue PQ; since lower Q would also lead to lower total cost, profit would go up due to the combination of increased revenue and decreased cost. Thus Q1 does not give the highest possible profit.Marginal product of labor, marginal revenue product of labor, and profit maximizationThe general rule is that firm maximizes profit by producing that quantity of output where marginal revenue equals marginal costs. The profit maximization issue can also be approached from the input side. That is, what is the profit maximizing usage of the variable input? [10] To maximize profit the firm should increase usage of the input "up to the point where the input's marginal revenue product equals its marginal costs".[11] So mathematically the profit maximizing rule is MRPL = MCL, where the subscript L refers to the commonly assumed variable input, labor. The marginal revenue product is the change in total revenue per unit change in the variable input. That is MRPL = ∆TR/∆L. MRPL is the product of marginal revenue and the marginal product of labor or MRPL = MR x MPL.
How does monopolists maximize profits?
A monopolist maximizes profits by choosing an output such that marginal revenue equals marginal cost. This is in contrast to a perfect competition where firms maximizes profits at price equal to marginal cost. Mathematically, the monopolist profit can be calculated as such: π = pq-cq, where π is the profits, p is the price, c is the marginal cost and q is the quantity The price reflects the inverse demand function; p=a-bq, where a is a constant and b is the slope (e.g. p=100-2q) If we insert this expression into the profit function it can be written as follows: π = (a-bq)q-cq Taking first order conditions (The derivative of π with respect to q) and put the condition equal to zero (Finding the stationary point (maximum) for the function): dπ/dq= 0 --> -bq+a-bq-c=0 Rewriting the expression: a-2bq=c, where a-2bq is the marginal revenue, and c is the marginal cost Solving this expression with respect to q: q=(a-c)/2b This is the optimal output of the monopolist, to find the price we insert this expression inte to expression for p we had earlier: p=a-b(a-c)/2b Rewritten: p=(a+c)/2 This is the optimal price of the monopolist. To find the profit we now insert the expression for optimal output and optimal price into the profit expression: π = (a-bq)q-cq --> π = ((a+c)/2-c)(a-c)/2b Simplifying and rewriting the expression we get: π = (a-c)^2/4b This might look a bit challenging if you are not used to working with algebra on general form, however, if you insert your specific numbers in the beginning it is quite straight forward.
What is the federal income tax rate for an architect?
In the United States, taxes are not levied according to occupation. An architect's marginal income tax rate depends on his total taxable income and the form under which he is conducting his business.
What was the total cost of world war 2 form both sides?
One estimate- $1.075 trillion in 1945 would cost $11,292,682,078,166.46 in 2005
Does knights in armor connected to form and function?
yes knights in armour are connected to form and function. Form: If the armour did not work then the knights would not of used it. Function: And the function is to protect you from a sword.
What is cost sheet and what purpose of use cost sheet?
Cost sheet is a statement, which shows various components of total cost of a product.It classifies and analyses the components of cost of a product. Previous periods data is given in the cost sheet for comparative study. It is a statement which shows per unit cost in addition to Total Cost. Selling price is ascertained with the help of cost sheet. The details of total cost presented in the form of a statement is termed as Cost sheet. Cost sheet is prepared on the basis of : 1. Historical Cost 2. Estimated Cost
Functional relationships Total Average and Marginal?
A Functional Relationship of the form y=f(X1,X2 ....Xn) means there is systematic relationship between the dependent variable y and the independent variable X1,X2 ....Xn and there is unique value of y for any set of values of the independent variables. In many economic models, a special set of functional relationships called total, average, and marginal functions is used. such functions are involved in the theory of demand,cost,production and market structure. Extracted from : Managerial Economics by: H. Craig Peterson, W.Chris Lewis, Sudhir K. Jain) for more detail refer this book ASHRAF
What is main distinguish between marginal costing and obsorption costing?
Main difference between these to accounting system is the treatment of Fixed cost... absorption costing absorb (include the fixed cost to unit prise on some reasonable basis) marginal costing only include variable cost to unit cost (cost of sale) of a product and treat fixed cost as period cost (charge t profit and loss account).. very basic example would be,,, a person John made a chair with wood, some glue and few nails.. these material cost him $ 20 / chair .. the rent he paid for the workshop is $ 50 a day(fixed cost, as he have to pay either he sale any chair or not),,, so he want to sale it at least a chair @ 20+50= $ 70 another person Locke at his neighbor with same cost sold the chair for $ 40 only.. charging $20 for material and $ 20 as contribution.. so from whom you would buy? obviously form Locke.because its cheaper.... but is Locke crazy.. who is going to pay his rent??? the answer is .. if he manage to sell 3 chairs per day which he can do easily because he is selling cheaper the the profit he earns would be as follows... total contribution $ 20/chair * 5 = $ 100 (means gross profit after all material cost of 5 chairs) rent per day = $ 50 ------ he earned a profit of = $ 50 a day after paying all costs... this is the simplest difference between marginal and absorption costing system john is using absorption costing and Locke is using marginal costing... if Locke sale 3 chairs then unit cost per chair would be total rent 50 total chair manufactured 3 fixed cost per unit 50/3 = 16.67 now the total cost per unit is (VC 20 and FC 16.67) = 36.6 sale prise of 5 chair in competition 40*5 = 200 cost of 5 chair 36.6 * 5 = 183 ----------- profit 17 with same business and with same sales volume and costs...they reporting different profits
