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You may be aware that there are three types of profit: accounting profit, economic profit, and normal profit. The difference between the total revenue and the sum of the explicit and implicit costs of an organization results in economic profit. It is commonly assumed that every firm's goal is to maximize its profit, and the economic theory of business is built on this underlying assumption. Address the following in detail: Describe the economic principles that company executives should consider when developing a strategy or strategies that will maximize profits while minimizing incentives for competitors to develop competing products. Explain why each of these economic principles is important to the company's strategy. Recommend and justify a strategy that you believe will maximize profits while minimizing incentives for increased competition.
Burling Water Cooperative currently contracts the removal of small amounts of hydrogen sulfide from its well water using manganese dioxide filtration prior to the addition of chlorine and fluoride. Assume payment is made at the end of each contract y..
Think of any financial innovation in the past ten years
It is important for companies to differentiate their services or products in the market place. This differentiation sometimes leads to building a core competency. which we will explore in the following individual assignment.
The profitability of a bank depends on several different factors. Why is “Duration Analysis” so important to a bank? What should a bank do if inflation increases? Explain with examples. What should a bank do if inflation decreases? Explain with exa..
Analyze the following ideas graphically and explain any fallacies that may be stated. An increase in demand will cause price to rise, with a rise in price, supply will increase and the increase in supply will push price down. Therefore, an increase i..
What must be true about the price elasticity of demand if your proposal is to achieve its goal of raising revenue? Explain your answer.
The demand function for a firm’s product is Q = P!3 . The firm’s marginal cost of production is constant at MC(Q) = 12. Calculate the elasticity of demand, as a function of Q. Using your answers to (a) and (b), what is the firm’s profit-maximizing ma..
The statistical significance of the slope coefficient can only be tested using the F test. Adjusted R2 gives the actual percentage of the variation in the dependent variable explained by the regression model. The intercept of the equation: Y=.09+1.5X..
The Clean Air Act, a federal statute, establishes national air pollution standards for fleet vehicles such as buses, taxicabs, and trucks. The South Coast Air Quality Management District (South Coast) is a political entity of the state of California...
Research the government shutdown using legitimate news and political sources. Describe the effect the government shutdown had on federal services and federal spending. Discuss it in terms of the effect on government policy, the effect on the economy,..
the impossible trinity refers to the idea that a country can simultaneously pursue only two of the three following
Consider the following market for used cars. There are many sellers of used cars. Each seller has exactly one used car to sell and is characterized by the quality of the used car he wishes to sell. Let θ ∈ [0, 1] index the quality of a used car and a..
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