PPT-Cost, revenue, profit

Marginals for linear functions Break Even points Supply and Demand Equilibrium Applications with Linear Functions Cost Revenue Profit Marginals Cost Cx variable costs fixed costs Revenue Rx price sold. Costs and Marginal Analysis (Chapter 9). In this chapter, look for the answers to these questions:. Why are . implicit. as well as . explicit. costs important in decision making?. What is the difference between . 14. March 7. th. , 2014. Lecture . 20. Ch. . 10 (up to p. . 231). and Ch. 11. . Firms Maximize Profit. Profit. is the difference between total revenue and total cost.. Profit = Total revenue – Total cost. Unit 2- Revision . Please watch this video. Write down all the costs you can think of when running a barber shop.. http://barberconnect.co.uk. (video on homepage). What is a cost?. http://. www.salonsdirect.com. Marginals. for linear functions. Break Even points. Supply and Demand Equilibrium. Applications with Linear Functions. Cost, Revenue, Profit, . Marginals. Cost: C(x) = variable costs + fixed costs. Revenue: R(x) = (price)(# sold). Demand for the product of a perfectly competitive firm. P. rice determined . by . S & D. P. rice . taker . Won’t charge higher or lower than market price. H. orizontal (perfectly . elastic) at . maximization. Economic profit = total revenue - all economic costs. Economic costs include accounting cost. (. explicit. . costs. ). and opportunity costs (implicit. . costs. ).. Profit maximization. How do businesses decide what price to charge and how much to produce?. It depends on the . character of its industry. .. Classroom Concerns. Attendance Issues* 15 Limit. Tardiness. Uniform. Assignment Completion. . 12. Competition. Competition. What is perfect competition?. How are price and output determined in a competitive industry?. Why do firms enter and leave an industry?. How do changes in demand and technology affect an industry?. HUBBARD. Economics. FOURTH EDITION. ANTHONY PATRICK. O’BRIEN. Firms in . Perfectly Competitive Markets. CHAPTER. 12. Chapter Outline . and. . Learning Objectives. 12.1. Perfectly Competitive Markets. 1. Revenue recognition. Expense recognition. Revenue recognition by critical event. Revenue recognition by effort expended. The percentage-of-completion method. Long-term contract losses. The instalment method. RyanAir. Melissa Chen, David . Gruen. ,. How-Chin Liu,. John . Masline. RyanAir. Launch Strategy. Revenue Assumptions:. An average of 70% capacity. Runs 365 days in a year. Price is I. ₤. 98 per passenger. IB Business & Management. IB2 Higher Level. Objectives. By the end of the lesson, students should be able to: -. To classify costs as fixed, variable, semi-variable, direct, indirect . To understand the importance of profit quality . . The costs that an organization incurs even when there is little or no activity are . fixed costs. , or . overhead. .. Finding Marginal Cost. . Variable costs . are usually associated with labor and raw materials and change with the business’s rate of operation or output.. Mr. Henry. AP Economics. AP Review . Questions from Yesterday. A requirement of perfect competition is that. Many firms sell an identical product to many buyers. There are no restrictions on entry into (or exit from) the market, and established firms have no advantage over new firms.