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Models in economics provide simplified representations of real-world situations to better understand them. A key assumption in models is that all other relevant factors remain unchanged. The law of demand states that as price increases, quantity demanded decreases, and vice versa. Demand can be shown through schedules, curves, and functions relating price and quantity. Profit is maximized where marginal revenue equals marginal cost, satisfying both the first- and second-order conditions through the slopes of the total revenue and total cost curves.

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Managerial economics

This document provides an overview of managerial economics. It defines managerial economics as applying quantitative tools to solve business problems. Some common managerial problems are pricing, production levels, financing, and investment decisions. The objective of managers is typically profit maximization. The decision making process involves identifying problems, alternatives, evaluating alternatives using data, and choosing the best solution. Economic conditions and market forces influence managerial problems and decisions.

Cost Theory and Estimation

The document discusses key concepts in cost theory and estimation including short-run and long-run cost curves, cost-volume-profit analysis, new economies of scale, and empirical estimation of cost functions. It examines cost concepts such as total, average, and marginal costs. It also explores returns to scale, learning curves, supply chain management, and other factors that influence a firm's costs.

Cost 3

This document discusses theories of costs in the short run and long run for firms. It defines fixed costs as expenses that do not change with output, and variable costs as expenses that change proportionally with output. In the short run, total costs are the sum of fixed and variable costs. In the long run, when all costs are variable, the long run average cost curve is derived from the minimum points of multiple short run average cost curves and can exhibit economies or diseconomies of scale.

Ch21

This document discusses different types of cost curves including total cost curves, variable cost curves, average total cost curves, average variable cost curves, average fixed cost curves, and marginal cost curves. It explains how these curves are related to each other and how they are derived from cost functions. Specifically, it discusses how marginal cost is related to average variable cost and average total cost, and how the curves intersect at minimum points. The document also contrasts short-run and long-run cost curves, explaining that a firm's long-run total cost curve is the lower envelope of all its possible short-run total cost curves as it varies the amount of fixed inputs over time.

Cost function.ppt

This document discusses various cost concepts in economics. It defines private and social costs, and explains how private costs can be measured using economic and accounting costs. Economic cost includes explicit costs like wages as well as implicit opportunity costs. The document then discusses different types of costs in the short run including total, variable, fixed, average, and marginal costs. It provides examples and graphs to illustrate cost curves and their relationships. Specifically, it explains that AVC, ATC and MC curves are U-shaped due to the law of variable proportions. The document also discusses costs in the long run and how the long run average cost curve is determined by the envelope of short run average cost curves. Finally, it discusses the learning curve concept and how

Theory of costs, micro economics

The document discusses theories of costs in the short run and long run for firms. In the short run, costs are classified as fixed or variable. Fixed costs do not change with output while variable costs do change with output. In the long run, nothing is fixed. Long run average cost (LRAC) curves illustrate average costs when all factors of production can be varied. LRAC curves are U-shaped and reflect economies of scale at low outputs and diseconomies of scale at high outputs. LRAC curves envelop multiple short run average cost curves as firms choose the optimal factory size.

Theory of cost final

The document discusses various cost concepts in economics including:
- Opportunity cost is the next best alternative use of a resource.
- Accounting costs include explicit payments, while economic costs also include implicit opportunity costs.
- Total, average, and marginal costs are defined for both the short-run and long-run. In the short-run some costs are fixed while in the long-run all costs are variable.
- Cost curves like AVC, ATC, and MC are U-shaped based on the law of diminishing returns in production. Minimum efficient scale is where long-run average costs are minimized.

Lecture6

This document discusses cost functions and different types of costs faced by firms. It covers:
1. Accounting costs refer to explicit payments like wages, rent, etc. Economic costs also include opportunity costs of inputs.
2. Firms minimize costs by choosing the optimal input combination given input prices to produce a certain output level. This allows deriving the total cost function TC(Q).
3. Short-run costs are analyzed assuming one input is fixed, while long-run all inputs are variable. The envelope of short-run total cost curves defines the total cost curve facing the firm.

Managerial economics

This document provides an overview of managerial economics. It defines managerial economics as applying quantitative tools to solve business problems. Some common managerial problems are pricing, production levels, financing, and investment decisions. The objective of managers is typically profit maximization. The decision making process involves identifying problems, alternatives, evaluating alternatives using data, and choosing the best solution. Economic conditions and market forces influence managerial problems and decisions.

Cost Theory and Estimation

The document discusses key concepts in cost theory and estimation including short-run and long-run cost curves, cost-volume-profit analysis, new economies of scale, and empirical estimation of cost functions. It examines cost concepts such as total, average, and marginal costs. It also explores returns to scale, learning curves, supply chain management, and other factors that influence a firm's costs.

Cost 3

This document discusses theories of costs in the short run and long run for firms. It defines fixed costs as expenses that do not change with output, and variable costs as expenses that change proportionally with output. In the short run, total costs are the sum of fixed and variable costs. In the long run, when all costs are variable, the long run average cost curve is derived from the minimum points of multiple short run average cost curves and can exhibit economies or diseconomies of scale.

Ch21

This document discusses different types of cost curves including total cost curves, variable cost curves, average total cost curves, average variable cost curves, average fixed cost curves, and marginal cost curves. It explains how these curves are related to each other and how they are derived from cost functions. Specifically, it discusses how marginal cost is related to average variable cost and average total cost, and how the curves intersect at minimum points. The document also contrasts short-run and long-run cost curves, explaining that a firm's long-run total cost curve is the lower envelope of all its possible short-run total cost curves as it varies the amount of fixed inputs over time.

Cost function.ppt

This document discusses various cost concepts in economics. It defines private and social costs, and explains how private costs can be measured using economic and accounting costs. Economic cost includes explicit costs like wages as well as implicit opportunity costs. The document then discusses different types of costs in the short run including total, variable, fixed, average, and marginal costs. It provides examples and graphs to illustrate cost curves and their relationships. Specifically, it explains that AVC, ATC and MC curves are U-shaped due to the law of variable proportions. The document also discusses costs in the long run and how the long run average cost curve is determined by the envelope of short run average cost curves. Finally, it discusses the learning curve concept and how

Theory of costs, micro economics

The document discusses theories of costs in the short run and long run for firms. In the short run, costs are classified as fixed or variable. Fixed costs do not change with output while variable costs do change with output. In the long run, nothing is fixed. Long run average cost (LRAC) curves illustrate average costs when all factors of production can be varied. LRAC curves are U-shaped and reflect economies of scale at low outputs and diseconomies of scale at high outputs. LRAC curves envelop multiple short run average cost curves as firms choose the optimal factory size.

Theory of cost final

The document discusses various cost concepts in economics including:
- Opportunity cost is the next best alternative use of a resource.
- Accounting costs include explicit payments, while economic costs also include implicit opportunity costs.
- Total, average, and marginal costs are defined for both the short-run and long-run. In the short-run some costs are fixed while in the long-run all costs are variable.
- Cost curves like AVC, ATC, and MC are U-shaped based on the law of diminishing returns in production. Minimum efficient scale is where long-run average costs are minimized.

Lecture6

This document discusses cost functions and different types of costs faced by firms. It covers:
1. Accounting costs refer to explicit payments like wages, rent, etc. Economic costs also include opportunity costs of inputs.
2. Firms minimize costs by choosing the optimal input combination given input prices to produce a certain output level. This allows deriving the total cost function TC(Q).
3. Short-run costs are analyzed assuming one input is fixed, while long-run all inputs are variable. The envelope of short-run total cost curves defines the total cost curve facing the firm.

ch09. PROFIT MAXIMIZATION.ppt

1. The document discusses profit maximization by firms. It defines firms as associations of individuals organized to turn inputs into outputs.
2. A profit-maximizing firm chooses inputs and outputs to maximize the difference between total revenue and total costs. It will produce the output where marginal revenue equals marginal cost.
3. The firm's short-run supply curve is the positively-sloped portion of its marginal cost curve above the minimum of average variable cost. The firm will only produce where price exceeds average variable cost.

Cost

This document discusses different types of costs including explicit, implicit, private, social, money, real, and opportunity costs. It also discusses the differences between short run and long run costs. In the short run, some costs are fixed while others are variable. Total cost is the sum of total fixed and variable costs. Marginal cost is the change in total or variable costs from a change in output. Average and marginal costs are represented graphically. In the long run, all costs are variable and the long run average cost curve forms a U-shape.

Markdown Optimization under Inventory Depletion Effect

This document proposes a markdown optimization model to help large retailers determine optimal markdown pricing and inventory levels over time. The model accounts for factors like price elasticity, seasonal demand patterns, and an "inventory effect" where low inventory dampens sales. Computational experiments show the model can be used to generate pricing policies that minimize regret compared to optimal solutions, even with some parameter estimation error. The proposed approach aims to provide a fast, scalable and business-friendly way for retailers to centrally manage millions of markdown combinations.

Break even

This document discusses break-even analysis, which examines the interrelationships between a firm's sales, costs, and profits at different production levels. It defines the break-even point as the output level where total revenue equals total cost. The document presents both graphic and algebraic methods for calculating the break-even point, and provides examples of how to determine the number of units that must be sold to break even. Key concepts discussed include contribution margin, target volume, and comparing break-even points of different production methods.

Principles_of_Managerial_Economics_-_Yahya_Alshehhi

The document summarizes key concepts from Chapter 2 of Principles of Managerial Economics related to revenue, costs, profit, and their relationships. It defines revenue, costs, and profit and distinguishes between fixed and variable costs. It also distinguishes between accounting and economic perspectives on costs and profit. The chapter then discusses revenue, cost, and profit functions and how they relate to quantity. It introduces the concept of breakeven analysis and marginal analysis. It concludes by discussing the objective of maximizing firm value and using a cost-benefit analysis to evaluate projects.

Adauctions

Expense constrained bidder optimization in repeated auctions.
the nature of what this budget limit means for the bidders themselves is somewhat of a mystery. There seems to be some risk control element to it, some purely administrative element to it, some bounded-rationality element to it, and more...
A two parameter model for expense constraints in online budgeting problems.
Optimal bid can be mapped to static auction with a shaded virtual valuation.
Paper has more contents: MFE analysis and a finite horizon model.

The Production And Cost C M A

The firm is an economic institution that transforms factors of production into consumer goods – it:
Organizes factors of production.
Produces goods and services.
Sells produced goods and services.

Ch09

1. The document discusses profit maximization by firms. A profit-maximizing firm chooses inputs and outputs to maximize the difference between total revenue and total costs.
2. For a firm to maximize profits, the marginal revenue from producing one more unit must equal the marginal cost of producing that unit.
3. A firm's short-run supply curve is the positively-sloped portion of its short-run marginal cost curve above the minimum of average variable cost. The firm will only produce where price exceeds average variable cost.

03_Chapter 3 - student.pptx

- A variable cost is a cost that varies directly with changes in activity levels, while a fixed cost remains constant despite changes in activity. There are several methods to analyze mixed costs that have both fixed and variable components.
- The scattergraph method involves plotting total cost against activity levels and drawing a line of best fit. The intercept estimates fixed costs while the slope estimates variable cost per unit. The high-low method uses only the highest and lowest data points. Least squares regression fits a line to minimize errors using all data points.
- Regression analysis provides a more accurate estimate of fixed and variable cost components than other methods because it considers information from all observations. Goodness of fit measures how well the model fits the data.

Ch21

The document discusses different types of cost curves that firms can face, including total cost curves, average total cost curves, marginal cost curves, and how these curves relate to each other in both the short-run and long-run. It explains that a firm's long-run total cost curve is the lower envelope of its various short-run total cost curves. Similarly, a firm's long-run average total cost curve is the lower envelope of its short-run average total cost curves.

Cost analysis

This document discusses different types of costs including explicit, implicit, accounting, economic, replacement, fixed, variable, incremental, sunk, total, average, and marginal costs. It also covers cost concepts like total cost, average cost, marginal cost curves. Other topics covered include short run and long run costs, economies and diseconomies of scale, learning curves, and break-even analysis. Key cost relationships and cost minimization are also summarized.

integral calculus and it’s uses in different fields.

As the students of M.B.A, we need to know about many things regarding business mathematics. An entrepreneur needs to take many decisions with the help of mathematical terms. By using the terms properly, an entrepreneur can easily take any decision quantitatively. Among many tools, Integral calculus is one of them. It helps to identify many things related to our practical business life. Such as: total cost, total revenue, producer’s surplus, consumer’s surplus etc. So, it’s an important element of business tools. This report is completely based on integral calculus and it’s uses in different fields.

FInal MetLife Powerpoint Presentation[1]

This document describes a personal finance software program called PLF that helps users analyze and predict personal financial decisions. It uses market data to create demand, revenue, cost and profit functions. These functions are used to find the optimal price point that maximizes profit. The software represents demand as a quadratic function and assumes the product has a monopoly in the market. It graphs demand, revenue, cost and profit to determine the optimal price is $419.68, selling 666,000 units will result in maximum profit of $34.3 million. Sensitivity analysis shows a 1% lower demand decreases profit by $10k and a 2% higher cost decreases profit by $7.03 million.

1.0 introduction to managerial economics

This document provides an introduction to managerial economics. It defines managerial economics as the application of economic theory and analytical tools to solve business problems. The objective of firms is to maximize profits, revenue, or output while minimizing costs. Managerial economics helps managers make optimal decisions under constraints by using techniques like marginal analysis and optimization. It discusses key economic concepts including costs, revenue, and profit and their total, average, and marginal relationships. Firms aim to maximize profits by producing at the quantity where marginal revenue equals marginal cost.

Cost revenue analysis 1

This document provides an overview of key concepts in cost revenue analysis, including the production process, fixed and variable inputs, short-run versus long-run costs, the production function, marginal product, the law of diminishing returns, economic versus accounting costs, cost curves, revenue analysis, break-even and shutdown points, and scales of production in the long run. It defines important terms and concepts and provides examples to illustrate them.

theory of cost

The document discusses different theories of cost, including traditional and modern theories. Under traditional theory, costs are categorized as total, average, and marginal in both the short-run and long-run. Total cost equals total fixed cost plus total variable cost. Average cost depends on average fixed and average variable cost. Marginal cost is the change in total cost from producing one additional unit. In the long-run, all costs are variable. Modern theory proposes cost curves are L-shaped rather than U-shaped as traditionally thought.

Production Cost

This document discusses production costs and different types of average costs. It defines average fixed costs, average variable costs, and average total costs. Fixed costs remain constant regardless of production quantity, while variable costs change with quantity. Average costs are calculated by dividing total costs by quantity. Marginal cost is defined as the change in total cost from producing one more unit. Formulae show marginal cost is the difference between total costs of two levels of output. A graph illustrates how marginal cost decreases initially as total cost rises at a diminishing rate, reaches a minimum, and then increases as the rate of change in total costs increases.

Cost Concepts

This document discusses various cost concepts used for analyzing costs of projects. It defines total fixed costs, average fixed costs, total variable costs, average variable costs, total costs and average total costs. It also defines marginal cost. It discusses production rules for firms in the short run and long run, including how firms should determine production levels to maximize profits or minimize losses. It also covers economies and diseconomies of scale.

Ch08

This document defines accounting costs and economic costs, and explains how economists focus more on opportunity cost. It then discusses how labor, capital, and entrepreneurial costs are viewed from both the accounting and economic perspectives. The document goes on to mathematically define total costs, average costs, and marginal costs for a firm. It also discusses how a firm can determine the cost-minimizing combinations of inputs for different output levels to develop its expansion path. Various production functions and the resulting cost functions are presented as examples.

Unit 3 review_session

The document discusses costs of production in the short run under perfect competition. It defines short run as a period where at least one resource is fixed, such as plant capacity. It explains the differences between explicit costs that accountants consider and both explicit and implicit opportunity costs that economists consider. The document also defines different types of costs like total, variable, fixed, average, and marginal costs. It provides an example to calculate these different costs and explains why the marginal cost curve is U-shaped due to the law of diminishing marginal returns.

Unveiling the Dynamic Personalities, Key Dates, and Horoscope Insights: Gemin...

Explore the fascinating world of the Gemini Zodiac Sign. Discover the unique personality traits, key dates, and horoscope insights of Gemini individuals. Learn how their sociable, communicative nature and boundless curiosity make them the dynamic explorers of the zodiac. Dive into the duality of the Gemini sign and understand their intellectual and adventurous spirit.

Anny Serafina Love - Letter of Recommendation by Kellen Harkins, MS.

This letter, written by Kellen Harkins, Course Director at Full Sail University, commends Anny Love's exemplary performance in the Video Sharing Platforms class. It highlights her dedication, willingness to challenge herself, and exceptional skills in production, editing, and marketing across various video platforms like YouTube, TikTok, and Instagram.

ch09. PROFIT MAXIMIZATION.ppt

1. The document discusses profit maximization by firms. It defines firms as associations of individuals organized to turn inputs into outputs.
2. A profit-maximizing firm chooses inputs and outputs to maximize the difference between total revenue and total costs. It will produce the output where marginal revenue equals marginal cost.
3. The firm's short-run supply curve is the positively-sloped portion of its marginal cost curve above the minimum of average variable cost. The firm will only produce where price exceeds average variable cost.

Cost

This document discusses different types of costs including explicit, implicit, private, social, money, real, and opportunity costs. It also discusses the differences between short run and long run costs. In the short run, some costs are fixed while others are variable. Total cost is the sum of total fixed and variable costs. Marginal cost is the change in total or variable costs from a change in output. Average and marginal costs are represented graphically. In the long run, all costs are variable and the long run average cost curve forms a U-shape.

Markdown Optimization under Inventory Depletion Effect

This document proposes a markdown optimization model to help large retailers determine optimal markdown pricing and inventory levels over time. The model accounts for factors like price elasticity, seasonal demand patterns, and an "inventory effect" where low inventory dampens sales. Computational experiments show the model can be used to generate pricing policies that minimize regret compared to optimal solutions, even with some parameter estimation error. The proposed approach aims to provide a fast, scalable and business-friendly way for retailers to centrally manage millions of markdown combinations.

Break even

This document discusses break-even analysis, which examines the interrelationships between a firm's sales, costs, and profits at different production levels. It defines the break-even point as the output level where total revenue equals total cost. The document presents both graphic and algebraic methods for calculating the break-even point, and provides examples of how to determine the number of units that must be sold to break even. Key concepts discussed include contribution margin, target volume, and comparing break-even points of different production methods.

Principles_of_Managerial_Economics_-_Yahya_Alshehhi

The document summarizes key concepts from Chapter 2 of Principles of Managerial Economics related to revenue, costs, profit, and their relationships. It defines revenue, costs, and profit and distinguishes between fixed and variable costs. It also distinguishes between accounting and economic perspectives on costs and profit. The chapter then discusses revenue, cost, and profit functions and how they relate to quantity. It introduces the concept of breakeven analysis and marginal analysis. It concludes by discussing the objective of maximizing firm value and using a cost-benefit analysis to evaluate projects.

Adauctions

Expense constrained bidder optimization in repeated auctions.
the nature of what this budget limit means for the bidders themselves is somewhat of a mystery. There seems to be some risk control element to it, some purely administrative element to it, some bounded-rationality element to it, and more...
A two parameter model for expense constraints in online budgeting problems.
Optimal bid can be mapped to static auction with a shaded virtual valuation.
Paper has more contents: MFE analysis and a finite horizon model.

The Production And Cost C M A

The firm is an economic institution that transforms factors of production into consumer goods – it:
Organizes factors of production.
Produces goods and services.
Sells produced goods and services.

Ch09

1. The document discusses profit maximization by firms. A profit-maximizing firm chooses inputs and outputs to maximize the difference between total revenue and total costs.
2. For a firm to maximize profits, the marginal revenue from producing one more unit must equal the marginal cost of producing that unit.
3. A firm's short-run supply curve is the positively-sloped portion of its short-run marginal cost curve above the minimum of average variable cost. The firm will only produce where price exceeds average variable cost.

03_Chapter 3 - student.pptx

- A variable cost is a cost that varies directly with changes in activity levels, while a fixed cost remains constant despite changes in activity. There are several methods to analyze mixed costs that have both fixed and variable components.
- The scattergraph method involves plotting total cost against activity levels and drawing a line of best fit. The intercept estimates fixed costs while the slope estimates variable cost per unit. The high-low method uses only the highest and lowest data points. Least squares regression fits a line to minimize errors using all data points.
- Regression analysis provides a more accurate estimate of fixed and variable cost components than other methods because it considers information from all observations. Goodness of fit measures how well the model fits the data.

Ch21

The document discusses different types of cost curves that firms can face, including total cost curves, average total cost curves, marginal cost curves, and how these curves relate to each other in both the short-run and long-run. It explains that a firm's long-run total cost curve is the lower envelope of its various short-run total cost curves. Similarly, a firm's long-run average total cost curve is the lower envelope of its short-run average total cost curves.

Cost analysis

This document discusses different types of costs including explicit, implicit, accounting, economic, replacement, fixed, variable, incremental, sunk, total, average, and marginal costs. It also covers cost concepts like total cost, average cost, marginal cost curves. Other topics covered include short run and long run costs, economies and diseconomies of scale, learning curves, and break-even analysis. Key cost relationships and cost minimization are also summarized.

integral calculus and it’s uses in different fields.

As the students of M.B.A, we need to know about many things regarding business mathematics. An entrepreneur needs to take many decisions with the help of mathematical terms. By using the terms properly, an entrepreneur can easily take any decision quantitatively. Among many tools, Integral calculus is one of them. It helps to identify many things related to our practical business life. Such as: total cost, total revenue, producer’s surplus, consumer’s surplus etc. So, it’s an important element of business tools. This report is completely based on integral calculus and it’s uses in different fields.

FInal MetLife Powerpoint Presentation[1]

This document describes a personal finance software program called PLF that helps users analyze and predict personal financial decisions. It uses market data to create demand, revenue, cost and profit functions. These functions are used to find the optimal price point that maximizes profit. The software represents demand as a quadratic function and assumes the product has a monopoly in the market. It graphs demand, revenue, cost and profit to determine the optimal price is $419.68, selling 666,000 units will result in maximum profit of $34.3 million. Sensitivity analysis shows a 1% lower demand decreases profit by $10k and a 2% higher cost decreases profit by $7.03 million.

1.0 introduction to managerial economics

This document provides an introduction to managerial economics. It defines managerial economics as the application of economic theory and analytical tools to solve business problems. The objective of firms is to maximize profits, revenue, or output while minimizing costs. Managerial economics helps managers make optimal decisions under constraints by using techniques like marginal analysis and optimization. It discusses key economic concepts including costs, revenue, and profit and their total, average, and marginal relationships. Firms aim to maximize profits by producing at the quantity where marginal revenue equals marginal cost.

Cost revenue analysis 1

This document provides an overview of key concepts in cost revenue analysis, including the production process, fixed and variable inputs, short-run versus long-run costs, the production function, marginal product, the law of diminishing returns, economic versus accounting costs, cost curves, revenue analysis, break-even and shutdown points, and scales of production in the long run. It defines important terms and concepts and provides examples to illustrate them.

theory of cost

The document discusses different theories of cost, including traditional and modern theories. Under traditional theory, costs are categorized as total, average, and marginal in both the short-run and long-run. Total cost equals total fixed cost plus total variable cost. Average cost depends on average fixed and average variable cost. Marginal cost is the change in total cost from producing one additional unit. In the long-run, all costs are variable. Modern theory proposes cost curves are L-shaped rather than U-shaped as traditionally thought.

Production Cost

This document discusses production costs and different types of average costs. It defines average fixed costs, average variable costs, and average total costs. Fixed costs remain constant regardless of production quantity, while variable costs change with quantity. Average costs are calculated by dividing total costs by quantity. Marginal cost is defined as the change in total cost from producing one more unit. Formulae show marginal cost is the difference between total costs of two levels of output. A graph illustrates how marginal cost decreases initially as total cost rises at a diminishing rate, reaches a minimum, and then increases as the rate of change in total costs increases.

Cost Concepts

This document discusses various cost concepts used for analyzing costs of projects. It defines total fixed costs, average fixed costs, total variable costs, average variable costs, total costs and average total costs. It also defines marginal cost. It discusses production rules for firms in the short run and long run, including how firms should determine production levels to maximize profits or minimize losses. It also covers economies and diseconomies of scale.

Ch08

This document defines accounting costs and economic costs, and explains how economists focus more on opportunity cost. It then discusses how labor, capital, and entrepreneurial costs are viewed from both the accounting and economic perspectives. The document goes on to mathematically define total costs, average costs, and marginal costs for a firm. It also discusses how a firm can determine the cost-minimizing combinations of inputs for different output levels to develop its expansion path. Various production functions and the resulting cost functions are presented as examples.

Unit 3 review_session

The document discusses costs of production in the short run under perfect competition. It defines short run as a period where at least one resource is fixed, such as plant capacity. It explains the differences between explicit costs that accountants consider and both explicit and implicit opportunity costs that economists consider. The document also defines different types of costs like total, variable, fixed, average, and marginal costs. It provides an example to calculate these different costs and explains why the marginal cost curve is U-shaped due to the law of diminishing marginal returns.

ch09. PROFIT MAXIMIZATION.ppt

ch09. PROFIT MAXIMIZATION.ppt

Cost

Cost

Markdown Optimization under Inventory Depletion Effect

Markdown Optimization under Inventory Depletion Effect

Break even

Break even

Principles_of_Managerial_Economics_-_Yahya_Alshehhi

Principles_of_Managerial_Economics_-_Yahya_Alshehhi

Adauctions

Adauctions

The Production And Cost C M A

The Production And Cost C M A

Ch09

Ch09

03_Chapter 3 - student.pptx

03_Chapter 3 - student.pptx

Ch21

Ch21

Cost analysis

Cost analysis

integral calculus and it’s uses in different fields.

integral calculus and it’s uses in different fields.

FInal MetLife Powerpoint Presentation[1]

FInal MetLife Powerpoint Presentation[1]

1.0 introduction to managerial economics

1.0 introduction to managerial economics

Cost revenue analysis 1

Cost revenue analysis 1

theory of cost

theory of cost

Production Cost

Production Cost

Cost Concepts

Cost Concepts

Ch08

Ch08

Unit 3 review_session

Unit 3 review_session

Unveiling the Dynamic Personalities, Key Dates, and Horoscope Insights: Gemin...

Explore the fascinating world of the Gemini Zodiac Sign. Discover the unique personality traits, key dates, and horoscope insights of Gemini individuals. Learn how their sociable, communicative nature and boundless curiosity make them the dynamic explorers of the zodiac. Dive into the duality of the Gemini sign and understand their intellectual and adventurous spirit.

Anny Serafina Love - Letter of Recommendation by Kellen Harkins, MS.

This letter, written by Kellen Harkins, Course Director at Full Sail University, commends Anny Love's exemplary performance in the Video Sharing Platforms class. It highlights her dedication, willingness to challenge herself, and exceptional skills in production, editing, and marketing across various video platforms like YouTube, TikTok, and Instagram.

buy old yahoo accounts buy yahoo accounts

As a business owner, I understand the importance of having a strong online presence and leveraging various digital platforms to reach and engage with your target audience. One often overlooked yet highly valuable asset in this regard is the humble Yahoo account. While many may perceive Yahoo as a relic of the past, the truth is that these accounts still hold immense potential for businesses of all sizes.

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2. How to leverage your testimonials to boost your sales 💲
3. How you can capture more CRM data to understand your audience better through video testimonials. 📊

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Manufacturing startups constitute the largest pipeline share of unicorns and IPO candidates in the SF Bay Area, and software startups dominate in Germany.

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amptalk_RecruitingDeck_english

How MJ Global Leads the Packaging Industry.pdf

MJ Global's success in staying ahead of the curve in the packaging industry is a testament to its dedication to innovation, sustainability, and customer-centricity. By embracing technological advancements, leading in eco-friendly solutions, collaborating with industry leaders, and adapting to evolving consumer preferences, MJ Global continues to set new standards in the packaging sector.

Building Your Employer Brand with Social Media

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In this keynote, Luan Wise will provide invaluable insights to elevate your employer brand on social media platforms including LinkedIn, Facebook, Instagram, X (formerly Twitter) and TikTok. You'll learn how compelling content can authentically showcase your company culture, values, and employee experiences to support your talent acquisition and retention objectives. Additionally, you'll understand the power of employee advocacy to amplify reach and engagement – helping to position your organization as an employer of choice in today's competitive talent landscape.

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Navigating the world of forex trading can be challenging, especially for beginners. To help you make an informed decision, we have comprehensively compared the best forex brokers in India for 2024. This article, reviewed by Top Forex Brokers Review, will cover featured award winners, the best forex brokers, featured offers, the best copy trading platforms, the best forex brokers for beginners, the best MetaTrader brokers, and recently updated reviews. We will focus on FP Markets, Black Bull, EightCap, IC Markets, and Octa.

ikea_woodgreen_petscharity_dog-alogue_digital.pdf

ikea_woodgreen_petscharity_dog-alogue_digital.pdf

The Evolution and Impact of OTT Platforms: A Deep Dive into the Future of Ent...

This presentation provides a thorough examination of Over-the-Top (OTT) platforms, focusing on their development and substantial influence on the entertainment industry, with a particular emphasis on the Indian market.We begin with an introduction to OTT platforms, defining them as streaming services that deliver content directly over the internet, bypassing traditional broadcast channels. These platforms offer a variety of content, including movies, TV shows, and original productions, allowing users to access content on-demand across multiple devices.The historical context covers the early days of streaming, starting with Netflix's inception in 1997 as a DVD rental service and its transition to streaming in 2007. The presentation also highlights India's television journey, from the launch of Doordarshan in 1959 to the introduction of Direct-to-Home (DTH) satellite television in 2000, which expanded viewing choices and set the stage for the rise of OTT platforms like Big Flix, Ditto TV, Sony LIV, Hotstar, and Netflix. The business models of OTT platforms are explored in detail. Subscription Video on Demand (SVOD) models, exemplified by Netflix and Amazon Prime Video, offer unlimited content access for a monthly fee. Transactional Video on Demand (TVOD) models, like iTunes and Sky Box Office, allow users to pay for individual pieces of content. Advertising-Based Video on Demand (AVOD) models, such as YouTube and Facebook Watch, provide free content supported by advertisements. Hybrid models combine elements of SVOD and AVOD, offering flexibility to cater to diverse audience preferences.
Content acquisition strategies are also discussed, highlighting the dual approach of purchasing broadcasting rights for existing films and TV shows and investing in original content production. This section underscores the importance of a robust content library in attracting and retaining subscribers.The presentation addresses the challenges faced by OTT platforms, including the unpredictability of content acquisition and audience preferences. It emphasizes the difficulty of balancing content investment with returns in a competitive market, the high costs associated with marketing, and the need for continuous innovation and adaptation to stay relevant.
The impact of OTT platforms on the Bollywood film industry is significant. The competition for viewers has led to a decrease in cinema ticket sales, affecting the revenue of Bollywood films that traditionally rely on theatrical releases. Additionally, OTT platforms now pay less for film rights due to the uncertain success of films in cinemas.
Looking ahead, the future of OTT in India appears promising. The market is expected to grow by 20% annually, reaching a value of ₹1200 billion by the end of the decade. The increasing availability of affordable smartphones and internet access will drive this growth, making OTT platforms a primary source of entertainment for many viewers.

Unveiling the Dynamic Personalities, Key Dates, and Horoscope Insights: Gemin...

Unveiling the Dynamic Personalities, Key Dates, and Horoscope Insights: Gemin...

Anny Serafina Love - Letter of Recommendation by Kellen Harkins, MS.

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buy old yahoo accounts buy yahoo accounts

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Income Tax exemption for Start up : Section 80 IAC

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Observation Lab PowerPoint Assignment for TEM 431

Observation Lab PowerPoint Assignment for TEM 431

Creative Web Design Company in Singapore

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Lundin Gold Corporate Presentation - June 2024

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BeMetals Investor Presentation_June 1, 2024.pdf

BeMetals Investor Presentation_June 1, 2024.pdf

Dpboss Matka Guessing Satta Matta Matka Kalyan Chart Satta Matka

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Mastering B2B Payments Webinar from BlueSnap

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LA HUG - Video Testimonials with Chynna Morgan - June 2024

LA HUG - Video Testimonials with Chynna Morgan - June 2024

Industrial Tech SW: Category Renewal and Creation

Industrial Tech SW: Category Renewal and Creation

amptalk_RecruitingDeck_english_2024.06.05

amptalk_RecruitingDeck_english_2024.06.05

How MJ Global Leads the Packaging Industry.pdf

How MJ Global Leads the Packaging Industry.pdf

Building Your Employer Brand with Social Media

Building Your Employer Brand with Social Media

Authentically Social Presented by Corey Perlman

Authentically Social Presented by Corey Perlman

Best Forex Brokers Comparison in INDIA 2024

Best Forex Brokers Comparison in INDIA 2024

ikea_woodgreen_petscharity_dog-alogue_digital.pdf

ikea_woodgreen_petscharity_dog-alogue_digital.pdf

The Evolution and Impact of OTT Platforms: A Deep Dive into the Future of Ent...

The Evolution and Impact of OTT Platforms: A Deep Dive into the Future of Ent...

- 1. Economic Models: Basic Mathematical Tools applied in economics
- 2. Simplified representations of reality play a crucial role in economics. Why models?
- 3. Models in Economics •A model is a simplified representation of a real situation that is used to better understand real-life situations. Create a real but simplified economy Simulate an economy on a computer Ex.: Tax models, money models •The “other things equal” assumption means that all other relevant factors remain unchanged.
- 4. Demand A relation showing how much of a good consumers are willing and able to buy at each possible price during a given period of time, other things held constant
- 5. Law of Demand • A decrease in the price of a good, all other things held constant, will cause an increase in the quantity demanded of the good. • An increase in the price of a good, all other things held constant, will cause a decrease in the quantity demanded of the good.
- 6. Demand schedule Demand curve Price Quantity Demanded 1.25 $ 8 1.00 $ 14 0.75 $ 20 0.50 $ 26 0.25 $ 32 $- $0.25 $0.50 $0.75 $1.00 $1.25 2 8 14 20 26 32 Quantity Price D The Demand Curve The demand curve slopes downward because of the law of demand
- 7. Functional Relationships • Relationship between two variables, for e.g. price and output sold, expressed in various ways Table or graph Use of equations – Quantity sold depends on the price, in other words quantity sold is a function of price. P is the independent value and Q is the dependent value p p f Q 5 200 ) (
- 8. Linear Demand Function QX = a0 + a1PX + a2N + a3I + a4PY + a5T PX QX Intercept: a0 + a2N + a3I + a4PY + a5T = 200 Slope: QX/PX = a1 =-5
- 9. Non-linear functions • For e.g. Total Revenue • TR=PQ • Marginal Revenue (Slope of Total revenue) • MR=Change in TR associated with change in Q
- 10. Tabular form Representation Q P=100-10Q TR=100Q-10Q2 AR MR 0 100 0 - 0 1 90 90 90 90 2 80 160 80 70 3 70 210 70 50 4 60 240 60 30 5 50 250 50 10 6 40 240 40 -10
- 11. Graphical Representation & Concept of Slope & Curvature TR TR Q O A B C
- 12. • Slope of TR Curve at a particular point represents MR at a particular output, i.e., change in TR for an infinitesimal change in output level • Implication of slope for any variable implies marginal value of the same variable • Curvature depends on changes in slope or changes in marginal value Changes in Slope
- 13. Changes in Curvature • Linear Curve – Marginal value constant, no change in curvature • Curve Convex to the origin – Marginal value (Slope) changing at an increasing rate • Curve Concave to the origin – Marginal value ( Slope) changing at a decreasing rate
- 14. Average and Marginal • Graphically Average value can be derived from the total value curve. • Average at a point on the Total value curve is equal to the slope of the ray from the origin to that particular point • To increase (decrease) the average value, Average value should be less (more) than the Marginal value • Average Value constant implies its equality with Marginal Revenue
- 15. Find out from Total Cost, Average, & Marginal Cost Q TC AC MC 0 20 - - 1 140 140 120 2 160 80 20 3 180 60 20 4 240 60 60 5 480 96 240 AC = TC/Q MC = TC/Q
- 16. Average Cost (AC) Q TC AC MC 0 20 - - 1 140 140 120 2 160 80 20 3 180 60 20 4 240 60 60 5 480 96 240 AC = TC/Q
- 17. Total, Average, and Marginal Cost Q TC AC MC 0 20 - - 1 140 140 120 2 160 80 20 3 180 60 20 4 240 60 60 5 480 96 240 AC = TC/Q MC = TC/Q
- 18. Total, Average, and Marginal Cost 0 60 120 180 240 0 1 2 3 4 Q T C ($) 0 60 120 0 1 2 3 4 Q AC , M C ($) AC M C
- 19. Optimization Techniques • In Economics different optimization techniques as a solution to decision making problems • Optimization implies either a variable is maximized or minimized whichever is required for efficiency purposes, subject to different constraints imposed on other variables • E.g. Profit Maximization, Cost Minimization, Revenue Maximization, Output Maximization • A problem of maxima & minima requires the help of differential calculus
- 20. Profit Maximization Q TR TC Profit 0 0 20 -20 1 90 140 -50 2 160 160 0 3 210 180 30 4 240 240 0 5 250 480 -230
- 21. Profit Maximization 0 60 120 180 240 300 0 1 2 3 4 5 Q ($) MC MR TC TR -60 -30 0 30 60 Profit
- 22. Marginal Analysis to profit maximization • Marginal Analysis requirement for profit Maximization, Marginal Revenue = Marginal Cost (MR) (MC) • Marginal Value represents slope of Total value curves, • Thus slopes of TR &TC should be equal
- 23. Conditions of Profit Maximization • MR=MC is a necessary condition for Maximization, not a sufficient one as this condition also hold for loss maximization • Sufficient condition requires that reaching a point of maximization, profit should start declining with any further rise in output, i.e. Slope of TC should rise & Slope of TR must fall after reaching the point of Maximization, • Change in MC>Change in MR
- 24. Concept of the Derivative The derivative of Y with respect to X is equal to the limit of the ratio Y/X as X approaches zero.
- 25. Rules of Differentiation Constant Function Rule: The derivative of a constant, Y = f(X) = a, is zero for all values of a (the constant). ( ) Y f X a 0 dY dX
- 26. Rules of Differentiation Power Function Rule: The derivative of a power function, where a and b are constants, is defined as follows. ( ) b Y f X aX 1 b dY b aX dX
- 27. Rules of Differentiation Sum-and-Differences Rule: The derivative of the sum or difference of two functions U and V, is defined as follows. ( ) U g X ( ) V h X dY dU dV dX dX dX Y U V
- 28. Rules of Differentiation Product Rule: The derivative of the product of two functions U and V, is defined as follows. ( ) U g X ( ) V h X dY dV dU U V dX dX dX Y U V
- 29. Rules of Differentiation Quotient Rule: The derivative of the ratio of two functions U and V, is defined as follows. ( ) U g X ( ) V h X U Y V 2 dU dV V U dY dX dX dX V
- 30. Rules of Differentiation Logarithmic Function: The derivative of a log function of X is defined as follows. d(log X)/dX= 1/X
- 31. Rules of Differentiation Chain Rule: The derivative of a function that is a function of X is defined as follows. ( ) U g X ( ) Y f U dY dY dU dX dU dX
- 32. Using derivatives to solve max and min problems Optimization With Calculus To optimize Y = f (X): First Order Condition: Find X such that dY/dX = 0 Second Order Condition: A. If d2Y/dX2 > 0, then Y is a minimum. OR B. If d2Y/dX2 < 0, then Y is a maximum.
- 33. CENTRAL POINT The dependent variable is maximized when its marginal value shifts from positive to negative, and vice versa
- 34. The Profit-maximizing rule Profit(p) = TR – TC At maximum profit dp/dQ = dTR/dQ - dTC/dQ = 0 So, dTR/dQ = dTC/dQ (1st.O.C.) => MR = MC d2TR/ dQ2 = d2TC/dQ2 (2nd O.C.) ==> dMR/dQ < dMC/dQ This means slope of MC is greater than slope of MR function
- 35. Constrained Optimization To optimize a function given a single constraint, imbed the constraint in the function and optimize as previously defined