Tuesday, June 18, 2019

Managerial Economics 610 Essay Example | Topics and Well Written Essays - 1750 words

Managerial Economics 610 - Essay Exampleall potential candidates for promotion to attend a be of seminars and take an exam upon completion around secern terms and concepts required to be mastered in order to cope with the demands of the new supervisory role. The conquest for promotion relates to a large extent on the quality of the answers you will provide to this exam, the way they will be presented and the justifications (where applicable) of own views put forward.Two key assumptions of perfect competition are that (1) each firm is too small to affect the marketplace price and output of an industry and that (2) firms produce homogenous products. Thus, condition these two conditions, it is not possible for perfectly competitive firms to view each other as fierce rivals in the market. The firms will be merely responding to market signals in the industry. In particular, each firm will respond to a given price. Prices are given in a perfect competition and no firm is able to influ ence the price because of homogeneity of products and as each firm is too small in relation to the market.When total revenue is little than the total variable cost, it is implied that total revenue (TR) cannot even pay for the total variable cost (TVC) of the firm. Variable costs are costs that vary establish on the output of the firm. It means that additional costs are paid for by the revenue of the firm as output is increased. It therefore makes no whiz for the firm to continue production in the short run. If TRTVC applies, it need not follow that the firm is making a profit because the fixed costs are not necessarily covered for by the total revenue. In other words, TRTVC applies. Nevertheless when TRTVC and TR

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