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Market

In: Business and Management

Submitted By Jayjay420
Words 1480
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Discussion 1 Week 3 ECO

I agree the manufacturing cost of the product is driven by the recurring cost of procuring the materials to fabricate it. For example, printed wiglets are manufactured to be dominated by material costs. (1) do something with the marginal benefits > meaning marginal costs of doing it. (2) start doing something when the marginal benefits = marginal cost of doing it. (3) never do something when the marginal benefits < marginal costs of doing it.

It can be easy wrongly conclude that marginal cost and total cost of the teams should always move in the same direction. That is, it total cost is rising, the marginal cost must be falling as well. To maximize the profit using marginal revenue and marginal cost, you focus on the contribution one additional unit of output makes the revenue relative to its contribution to the cost.

DISCUSSION 3 WEEK 3 ECO

I agree U.S. Postal Service face a lot of competition because they are not the only firm in its industry.
Firms are brought into existence by people in order to produce things. Economists assume that the overriding goal of all corporations is to make as big a profit possible. They make the assumptions: for example, if you ask around, profit maximization is near the top of every firm's to do list. No matter what other goals a firm may have, it still wants to maximize profits after taking steps to achieve those other goals. For instance, a firm that wants to have a factory that emits no greenhouse gases still, after it builds such a factory, wants to make as much money as possible. I think a lot of non-economics object to people's earning profits, but profits ensure that firms receive the crucial contributions of entrepreneurship. This is a factor of production, along with labor, land and capital. We could think of someone who has the opportunity to start her own business. She...

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