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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 is
An 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.
What else can I help you with?
Why is transaction cost important?
Transaction costs are important because they influence the efficiency of economic exchanges and the overall functioning of markets. High transaction costs can deter participation in trades, leading to reduced market liquidity and inefficiencies. They also play a crucial role in determining the structure of firms and industries, as businesses seek to minimize these costs through vertical integration or other strategies. Understanding transaction costs helps in designing better policies and contracts to facilitate smoother economic interactions.
What is the relationship between start up costs and a competitive market?
markets with high start-up costs are less likely to be perfectly competitive.
Why should we consider transaction costs in examining the role that money plays in society?
Transaction costs are crucial in examining the role of money because they directly influence the efficiency of economic exchanges. High transaction costs can hinder trade and limit market participation, leading to inefficiencies in resource allocation. Money serves as a medium that reduces these costs by facilitating smoother transactions, thus promoting economic activity and growth. Understanding transaction costs helps highlight the benefits of a robust monetary system in enhancing overall societal welfare.
What are the reasons why the money market is not fully developed in Kenya?
1. Poverty levels are high in Kenya 2. Ignorance among the citizens 3. The central bank favours capital markets rather than money markets. 4. The costs of borrowing are high hence few people borrow 5. There are superstitons about the money markets among the people. Eg many believe that loans are evil
What costs are there for a small business to accept credit cards?
The costs involved in small businesses accepting credit cards are quite high. Small businesses are charged a fee per credit card transaction. This fee will vary from country to country. It is common among most - if not all - major credit cards, that the transaction fee increases when a "premium" credit card is used. These "premium" cards allow the cardholder to reap rewards, while the business owner suffers. In Canada, for example, the transaction fee ranges from approximately 2% to 3% per transaction (for Visa and MasterCard).
What high level task on the navigation bar would you select to reallocate a new transaction?
transaction management
Which high-level task on the navigation bar would you select to re-allocate a transaction?
Transaction Management
What are some common problems associated with the Coase Theorem?
Some common problems associated with the Coase Theorem include high transaction costs, imperfect information, unequal bargaining power, and difficulties in defining property rights.
Where can one find information on high yield money markets?
One can find information on high yield money markets on various websites like SallieMae and SuzeOrman. One could also visit a local bank and ask information on high yield money markets in there.
Which high level do you select to access a cardholder statement?
Transaction management
The AOPC receives an email notification for a high risk transaction?
True
What is the construction cost per square foot in monmouth county new jersey?
Based on current material costs and actual inspections, building costs range from $200 sq. ft to as high as $300 based on the quality and finish of the home. Coastal homes typically are higher due to increased engineering costs (coastal area).
