Cost and Revenue Curves

Cost and Revenue Curves Chito Paulo ECO 561 November 16,2012 George Sharghi Cost and Revenue Curves Every bail is concern about the good bottom line because it debates the fellowship can sustain successful operation. The management determines strategy and methods to exploit the economic benefit or to minimize economic s conductding of the company. One turn up is to determine the output and expenditure direct and comparing the marginal terms and marginal taxation with application of the marginal cost (MC) marginal tax revenue (MR) progression (McConnell, Brue, & Flynn, 2009).  This approach is based on the fact that when MC = MR (which is contendd as the foreland of intersection of the curves) the economic gelt reaches its maximal finalise or minimum loss. The simulation on cost and revenue shows the interrelationship between the marginal cost and marginal revenue, and new(prenominal) factors that attend to a manager make rational decisions to maximize profits. The interrelationships were visualized in each of the scenario in the simulation. The first scenario involves choosing a evoke to make up the product that provides the greatest financial and practicable benefits.

A manager can make this decision by analyzing the behavior of the MC-MR curve and determining the point of greatest profit (MC=MR). The comparison between Florida and calcium using the MC-MR curve indicate that California is a better place to produce chromatic juice. At point MC=MR the FarmFresh Company can produce more orange juice and realize a upper limi t profit compared to MC=MR of Florida. This ! result is the effects of cheaper prices of orange, concerns for environment direct to more efficient operation and reduction in cost, and so on In scenario two, the prices of orange slackped. The price drop allowed the company in California to produce more orange juice. The price drop government agency the company has a new cost structure. On this situation, the point MC=MR moved to the right present that as the prices of...If you exigency to get a full essay, format it on our website: OrderCustomPaper.com

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