Where marginal cost and marginal revenue are equal

Assignment Help Finance Basics
Reference no: EM131303095

Is it realistic to assume that the economic concept of operating at the point where marginal revenue and marginal cost are equal can be applied to real-world strategic planning while at the same time marrying this concept to the capital budgeting process?

If so, how can that be done? If the concept is applied, how confident should we be that the firm will achieve the point where marginal cost and marginal revenue are equal?

Reference no: EM131303095

Questions Cloud

Explain why the currency to deposit ratio : Can you explain why the currency-to-deposit ratio and the ratio of total reserves to deposits moved as they did between 1930 and 1932?
Assessment 2 – letter writing assignment : The objective of this assignment is to learn to effectively research a technical aspect of accounting and communicate professional advice to a client, via a business letter.
Potential monetary and credit expansion : Why might banks in the mid-1930s have been holding reserves for "reasons of safety"?- What does Meltzer mean by "potential monetary and credit expansion"?
Professional career but also in your personal life : Preparing a CBA or Cost Benefit Analysis is a valuable tool to use not only in your professional career but also in your personal life as well. CBA's help us make decisions to determine which path to take. CBA's can be very simple (deciding which ..
Where marginal cost and marginal revenue are equal : If so, how can that be done? If the concept is applied, how confident should we be that the firm will achieve the point where marginal cost and marginal revenue are equal
Analyze the main advantages and disadvantages : examine the Featured ProBoards Forums at the bottom of the landing page. Next, speculate on the manner in which a company could use such Featured ProBoards Forums for its social media marketing campaign.Analyze the main advantages and disadvantages..
Does gold have intrinsic value : Does gold have intrinsic value? Why might Buiter have said that it didn't?- In what sense does a bubble in the price of an asset result from a "set of self-confirming beliefs"?
Determine the appropriate process control charts : Determine the appropriate process control charts that will be used to monitor the performance of that process and determine whether it is predictable (in control). Describe the data you plan to use and operationally define how it is to be collecte..
Create market segment profiles for the purpose of targeting : In marketing, segmentation is used to create market segment profiles for the purpose of targeting consumers. Marketers identify a target market as one of the following three different strategies:Undifferentiated targeting,Concentrated targeting.

Reviews

Write a Review

Finance Basics Questions & Answers

  Computation of present value of a liability

Computation of present value of a liability and Miner Industries develops an open pit uranium mine

  Concerning summary material modification

Which of the following statements concerning summary material modification is correct?

  Write some real or potential applications of the concepts

critically reflect on the importance of present and future values. what factors must be considered when calculating

  Japans real gdp was 548 trillion yen in 2011 and 560

japans real gdp was 548 trillion yen in 2011 and 560 trillion yen in 2012. japans population was 127.2 million in 2011

  What is the firm income tax liability

Enter your answer rounded off to two decimal points. Do not enter $ in the answer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box.

  Mortgage information during the credit crisis

Mortgage Information during the Credit Crisis: - Explain why mortgage originators have been criticized for their behavior during the credit crisis.

  Firm after tax cost of capital

What effect does changing the coupon rate have on the firm's after tax cost of capital? Why is there a change?

  What will be its payout ratio

The company wants to maintain a target capital structure which is 60 percent debt and 40 percent equity. The company forecasts that its net income this year will be $600,000. If the company follows a residual distribution model and pays all distribut..

  Management of current assets and current liabilities

The management of current assets and current liabilities in the short run can lead to several challenges for the financial manager. What are some of the more common challenges or problems encountered by the firm in this regard, and what are the p..

  Consider the encoding of restricted type expressions

Consider the encoding of restricted type expressions as sequences of bits in Example 6.1. In Johnson {1979], the two-bit fields for constructors appeared in the opposite order with the field for the outermost constructor appearing next to the four..

  Calculate the accounting rate of return

Depreciation is computed by the straight-line method. During the life of the investment, annual net income and cash inflows are expected to be $25,000 and $75,000, respectively. Mimi's minimum required rate of return is 10%

  Describe how is the npv rule is related to a cost-benefit

Discuss the Net Present Value (NPV) decision rule. Describe how is the NPV rule is related to a cost-benefit analysis, and how is it related to the Valuation Principle.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd