...EGT1 – Task 1 A. 1. The profit maximization is where there is the largest difference between total revenue and total cost. Total revenue, is what the widget(s) sells for. Total cost, is what costs to produce the widget(s).The profit maximization is where marginal revenue equals marginal cost. B. Marginal revenue is the additional revenue that will be made by Company A when it sells one additional unit of a product. C. Marginal cost is what it will cost Company A to produce one additional unit of product. D. The profit maximization occurs for company A at Q-8, both the Marginal Revenue, and Marginal Cost are both equal. Q TR TC TR/TC MR MC 0 0 10 -10 1 150 30 120 150 20.0 2 290 50 240 140 20.0 3 420 80 340 130 30.0 4 540 120 420 120 40.0 5 650 170 480 110 50.0 6 750 230 520 100 60.0 7 840 300 540 90 70.0 8 920 380 540 80 80.0 9 990 470 520 70 90.0 10 1050 570 480 60 100.0 11 1100 680 420 50 110.0 12 1140 800 340 40 120.0 13 1170 930 240 30 130.0 14 1190 1070 120 20 140.0 15 1200 1220 -20 10 150.0 E. If marginal revenue is higher than marginal cost, Company A should look into producing one or more products. F. If Marginal cost is higher than marginal revenue, the company is losing money every additional widget made. They need to look into producing a lower amount of widgets, where the marginal cost and revenue are...
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...EGT1 Economics and Global Business Applications Introduction: The study of government regulation and the competitive environment for business is relevant to all those who study business. All business candidates need to understand how the competitive environment will impact their employers and businesses. Task: Write an essay (suggested length of 2–3 pages) that describes the relationship between regulation and market structures and how regulation affects the market. A. Define industrial (i.e., economic) regulation. Industrial Regulation happens when government commissions regulate the rates or prices of natural monopolies. 1. Explain why industrial regulation exists. In a market structure of perfect competition industrial regulation is not required because there is a lot of competition and this encourages competing industries to make good use of resources, also the price of their goods are determined by the price the market will bear and consumers benefit. Whereas in a monopolistic competition there exists a market structure that could allow competitive monopolies, duopolies, oligopolies, and monopolies to charge higher than competitive prices or the use inefficient use of resources and limited supplies, creating an environment that is not conducive to the benefit of the consumer. . (McConnell, Brue & Flynn, 2012) 2. Explain how industrial regulation affects the market. Industrial regulation affects the market by keeping prices for natural monopolies...
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...Sally Wadley EGT1 Task 4 Revised, again. A. Japan is a beautiful country that is rich in history, tradition and has a very refined sense of culture. I had the pleasure of living there for two years in my late teens and remember learning all about their customs and culture. I am going to address three cross-cultural differences that would have to be taken into consideration if my company was to start business here. Labor Force. Hierarchy is greatly adhered to in Japan. In America, the oldest is not necessarily the best person for the job. Not so in Japan. In Japan, hierarchy and promotions are associated with the eldest. The person with the longest employment tenor or eldest member of the team or group would be the one honored and looked up to for advice. There would be major issues in company meetings where Americans could possibly be loud, disruptive, sarcastic, and vocal. Japanese employers would feel offended and disgraced if employees behaved in such manner. There would also be major issues in advertising if the American marketing efforts did not respect such hierarchy. Loud, disgraceful or disrespectful attitudes in advertising could be the difference in why my company would not selling and product, making a profit or gaining any investors. The Japanese do allow for some small degree of error in their customs and traditions, however, you don’t want to seem offensive as soon as you arrive. Sex and Gender. Although women have entered the workforce in recent decades...
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...EGT1 Task 1: March 15, 2013 A. Explain profit maximization from the following approaches: 1. Total revenue to total cost: Profit maximization occurs when total cost is subtracted from total revenue. The area where the largest gap occurs is where the greatest profit maximization occurs. 2. Marginal revenue to marginal cost: Profit maximization occurs when marginal revenue is equal to marginal cost. B. Explain the calculation used to determine marginal revenue. The calculation for marginal revenue is MR = ∆TR/∆Q (marginal revenue is equal to the change in total revenue divided by the change in quantity) 1. Discuss how marginal revenue increases, decreases, or remains constant in the given scenario. The marginal revenue decreases with each unit produced because at some point the marginal cost will be greater than the marginal revenue and at that point the company should halt production in order to avoid cutting into the profit margin. | | | | | |Quantity |TR |TC |MR | | | | | | |0 |$0.00 |$10 | | | | | | | |1 |$150 |$30 |$150 | | | | | | |2 |$290 |$50 |$140 | | | | | | |3 |$420 |$80 |$130...
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...Marginal revenue is a gain to a company from an additional unit of a product; which is additional income from selling one more unit of a good. Marginal revenue is the change in total revenue, with respect to the variable that is changing. (McConnell & Brue, 2012) Total revenue is equal to the price that can be charged consistent with selling a given quantity. Total revenue is considered the total sales revenue and other revenue for a particular period. (McConnell & Brue, 2012) Marginal revenue is equal to the change in total revenue over the change in quantity when the change in quantity is equal to one unit, (Total Revenue= Price that can be charged consistent with selling a given quantity times quantity) or TR= P (Q)*Q. (Marginal Revenue, 2011) Marginal cost is an increase or decrease in the total cost of production run for making one additional unit of an item. Marginal costs are considered variable costs that consist of labor and material. (McConnell & Brue, 2012) Marginal cost at each level of production includes any additional costs required to produce the next product. Total cost is the addition of all costs which includes commissions and fees. Marginal cost is the cost per unit of a product as against the total cost. Average total cost is the total cost of production at any level; which is the total cost divided by total production. While marginal cost shows the cost incurred in producing an additional unit, average cost shows the total cost of production per unit. (McConnell...
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...EGT 1 Task 4 In choosing to expand my business globally into the Asian continent, I would highly favor Singapore. After much research, I discovered that Singapore is paramount in global ranking in satisfaction of achieving a successful business. Doing business in Singapore provides boundless advantages which could lead one to believe that establishing ones business there could be done without challenges in regard to cultural differences. Nonetheless, there are several crucial cultural hurdles, if not addressed, could lead to incurring massive costs, should they be overlooked. Following are three primary cross-cultural differences to be considered in doing business in Singapore. In regard to relationships, Singapore is greatly persuaded by Asian ideologies. There is a strong emphasis on the significance of establishing a good relationship prior to doing business. This process is often unhurried as Singaporeans are guarded, wanting to be sure they are forming business relationships with those they are able trust. It is beneficial to keep in mind when doing business in Singapore, devoting time to create solid relationships will be best for business in the long haul. In establishing these bonds, it is crucial to be genuine and demonstrate good character and capabilities. Singapore, being a somewhat immature country, is influenced by both east and west and is well set to do business profitably with both. As the most advanced country in Southeast Asia, Singapore harmoniously...
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...A. Summarize the four major pieces of legislation collectively known as the Antitrust Laws. Sherman Act of 1890: The Sherman Act set the foundation for government to prohibit monopolies and to prosecute any market fixing. It gave the courts the ability to break up monopolies and prevent any sort of anticompetitive practices. It also gave individuals and parties the ability to sue the alleged for damages brought upon by these now illegal practices. Clayton Act of 1914: Many felt that the Sherman Act needed to be more direct, therefor the Clayton Act was passed into law to further bolster it. It outlawed price discrimination when it reduced competition. It also prohibited tying contracts that required buyers to purchase multiple products from a company when it wasn’t desired. Companies could no longer purchase stocks from competing corporations when the outcome would be less competition, and it prohibited interlocking directorates which would allow individuals to be directors or board members to have interest in multiple companies that would lead to reduced competition. Federal Trade Commission Act of 1914: This act created the Federal Trade Commission which works with the Justice Department to enforce antitrust laws. This enables the FTC to investigate unfair competitive practices, hold hearings on complaints, and issue cease-and-desist orders when it finds potentially illegal activities. Celler-Kefauver Act of 1950: There was a loophole in the Clayton Act...
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...A. Define the terms. 1. Elasticity of demand measures the change in the quantity demanded due to the price changes in the market. This can also be characterized as a change in percentage to both the quantity demanded and the price. Durable items, such as appliances or automobiles, show elasticity of demand because these products can be bought infrequently and are not a consumer necessity. These durables can be purchased at leisure or when the prices are low. Elasticity of demand is measured by the number of substitutes available, the degree of necessity, and the price of a good as a proportion of income. Cross-price elasticity is a measure between the price changes or demand for one good affects the change in the price of another good. When the cross-price elasticity is negative, goods are referred to as complements. If there is an increase in price of a good that results in the decrease of the quantity demanded of another product, then both products are considered to be complements of each other. When the cross-price elasticity is positive, goods are called substitutes. If there is an increase in the price of one product that results in the increase of the quantity demanded of another product, then both products are seen as substitutes. Because of cross-price elasticity, goods that compete with one another are often paired together in the market (economics.about.com). Income elasticity measures the change between the quantity of a good demanded and a change in income. Income...
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...Marginal revenue is a gain to a company from an additional unit of a product; which is additional income from selling one more unit of a good. Marginal revenue is the change in total revenue, with respect to the variable that is changing. (McConnell & Brue, 2012) Total revenue is equal to the price that can be charged consistent with selling a given quantity. Total revenue is considered the total sales revenue and other revenue for a particular period. (McConnell & Brue, 2012) Marginal revenue is equal to the change in total revenue over the change in quantity when the change in quantity is equal to one unit, (Total Revenue= Price that can be charged consistent with selling a given quantity times quantity) or TR= P (Q)*Q. (Marginal Revenue, 2011) Marginal cost is an increase or decrease in the total cost of production run for making one additional unit of an item. Marginal costs are considered variable costs that consist of labor and material. (McConnell & Brue, 2012) Marginal cost at each level of production includes any additional costs required to produce the next product. Total cost is the addition of all costs which includes commissions and fees. Marginal cost is the cost per unit of a product as against the total cost. Average total cost is the total cost of production at any level; which is the total cost divided by total production. While marginal cost shows the cost incurred in producing an additional unit, average cost shows the total cost of production per unit. (McConnell...
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...Cultural Sensitivity Student Name Western Governor's University Cultural Sensitivity Japan is the country that I chose to write my essay on. I chose Japan because I am fascinated by the Japanese culture and art. I also like the Japanese customs and their traditional way of dressing. Besides being able to communicate with one another due to a language barrier, cross-cultural issues, such as behaviour, beliefs, values and religion are other challenges that my impact Company A’s marketing approach. When it comes to behaviour, Company A must take into consideration what kind of behaviour is acceptable and unacceptable. When it comes to beliefs and values Company A must research the Japanese culture in order to understand how to approach advertising and marketing. Japanese also believe that women should be home taking care of their children and doing housework once they are married or have children. The Japanese, especially when it comes to advertising and marketing gives high regards to their women and may not agree to the way women are exposed in America in regards to advertisements marketing their products or services. Religion is a major factor in the Japanese culture and it places great emphasis on the establishment of business ethics. The Japanese have totally different beliefs are completely different. During meetings and negotiations Company A should be mindful of Japan’s business etiquette and what their gestures mean or represent. Japanese have an...
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...In today’s economy China has become a big player. If you look at many of the products in your house, most of them probably say made in China. With China being a partner to a lot of US businesses we have to be sensitive to the culture and traditions in China. To put this simple China has a different way of doing business than we do and in order to become successful when expanding into China we need to understand and accommodate those differences. While there are many cross-cultural differences between the US and China I will look at three of them. Three of those cross-cultural differences you need to understand and accommodate before you expand into China are ethnic culture, priorities, and decision making. The ethnic culture of China varies greatly from that of the US. Chinese people are more focused on relationships and group work while Americans are more individuals. Chinese tend to be more courteous and create personal relationships with their co-workers. Americans tend to be more direct and put business above personal relationships. Because of these differences, Americans tend to put conflicts behind them quicker for the betterment of the business and Chinese tend to take things more personally and it takes them longer to put conflicts in the past. Chinese also respect people based on age and wisdom whereas Americans tend to respect success and achievement. When expanding into China you need to address the ethnic culture in order to build a strong team and work...
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...A An intermediary or mediator is a key element to the potential business deal getting off to a good start within the country of Mongolia. Mongolians feel more comfortable doing business with business personnel that they already know (Mongolia, The Land of the Blue Skies; 2006). The mediator brings assurance to the Mongolian party that is negotiating with the American. All parties that will be attending the meeting are advised to be punctual; however it is not uncommon for the host to be late (Meszaros, 2011). This may be hard for Americans to become accustomed to, due to the sense and value on time within the western culture. Americans will need to remain calm and not worry about the business negotiations being awkward or bad. Mongolian business people are quite busy like Americans and it is not uncommon for a Mongolian to answer a phone call while engaged in the middle of business negotiations (Mongolia, The Land of the Blue Skies; 2006). They are less likely to ignore the call which may offend American business people. If the Mongolian host is present when the American arrives at the conference room, the American is strongly advised to formally greet the host with a handshake (Culture Crossing, 2013) and ask where to be seated (Meszaros, 2011). Americans also do not need to be disturbed by Mongolian citizens within the building poking their heads in the conference room while negotiations are conducted. Here in the United States a closed door is a sign...
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...Industrial regulation is a set of policies and restrictions created to limit the power of monopolies and simultaneously protect consumers. Industrial regulation exists because left unchecked, large trusts or corporations can control markets and prices in ways that unfairly hurt consumers. Industrial regulation affects markets by limiting business practices of firms and ensuring that ample competition exists. The entities that are most affected by industrial regulation would be natural monopolies and firms considered part of an oligopoly. Firms fitting those descriptions can find their price and production outputs being monitored and controlled by governments or public agencies through public ownership or public regulation. The purpose of those regulations is typically to ensure that fair output and prices are being observed that protect the consumer while simultaneously allowing for the controlled firm to maintain a profit. Social regulation relates to the impact of businesses on consumers, workers, the environment, and other interests not specifically tied to business output, prices, and profits. This can be the physical qualities of the goods produced, the conditions under which production occurs, and the impact of production on society. Social regulation exists to increase economic efficiency and society’s well-being by: removing unsafe products; improving working conditions and safety; decreasing economic discrimination; and reducing pollution. Social regulation is very broad...
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...EGT1: Task 1. When owning or managing a business it’s important to keep track of the marginal revenue. The most important factors in showing you if your business is a success are cost, revenue and profit. Revenue can high for a company, but if the costs are high as well a profit won’t show and they will most likely not be able to make it. It’s important for businesses to keep track of their profits and cost’s. The way businesses figure their profit maximization is by determining the price and the number of widgets made to get the highest profit they can for their business. There are two ways of figuring your highest profits, one of which is by Total Revenue/Total Cost method and the other way is Marginal Revenue/ Marginal Cost method. A1: Looking at Marginal Revenue shows how much profit a business has by selling each extra widget. Marginal Revenue is the change in total revenue coming with a change in quantity of widgets sold. Marginal Revenue is the difference in total revenue minus the difference in quantity. A2: In the Marginal Revenue/Marginal Cost method, for each unit sold the Marginal profit is equal to the Marginal Revenue less the Marginal Cost. Profit maximization is when Marginal Revenue is equal to the Marginal Cost. To show this, a business compares the amounts that each additional unit sold would add to the total revenue and the total cost. B: For Company A to find their Marginal Revenue, they would take the difference in total revenue after a widget is produced...
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...SUBDOMAIN: 309.1 -‐ ECONOMICS Competency 309.1.3: Competition The graduate analyzes a firm’s competitive environment to determine whether the market exhibits characteristics of perfect competition, monopoly, oligopoly, and monopolistic competition. Objective 309.1.3-‐06: Describe how the need for governmental price regulation differs for firms in different competitive environments. Date: February 9, 2015 A) The Anti-‐Trust Laws Sherman Act (1890) The Sherman Act came about due to a growing public resentment of trusts. The antitrust legislation is broken down into two parts: • Section 1 “Every contract, combination in the form of a trust or otherwise, or conspiracy, in restraint of trade or commerce among the several States, or with foreign nations is declared to be illegal.” Section 2 “Every person who shall monopolize, or attempt to monopolize, or combine or conspire with any person or persons, to monopolize any part of the trade or commerce among the several states, or with foreign nations, shall be deemed guilty of a felony” (Brue, Flynn, & McConnell, 2012) ...
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