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Why the marginal revenues curve is always half of the demand curveexplain graphically and algebrically?
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When a firm's marginal revenues are higher than its marginal cost?
Marginal cost is
When a firm's marginal revenues are higher than its marginal cost?
Marginal cost is
Why can firms not always reduce prices until they increase sales and profits?
if marginal production costs exceed marginal revenues, the firm will suffer losses, not profits.
What is firm equilibrium?
Firm equilibrium refers to a situation where a firm achieves a balance between its costs and revenues, maximizing profits. This is attained when the firm produces the level of output where marginal cost equals marginal revenue. It represents the point of optimization for the firm.
What is monopolist's marginal revenues less than the price of its goods?
because the monopolist firms are price maker and they can set any price they want and the customers are not perfect knowleged
State the arguments for using marginal costing approach in routine accounting?
- The Marginal costing technique is appropriate for decision making as it highlights those costs (and revenues) which will change as a result of the decision under review being put into effect. - As fixed costs are mostly overheads, and, under marginal costing these are all treated as period costs and charged into the income statement therefore marginal costing avoids arbitrary allocation of overheads to units of output. - Reporting profit on a marginal costing basis will be more closely relates to changes in sales volume and are less affected by changes in inventory levels. - An understanding of the behavior of costs and the implications of contribution is vital for accountants and managers as the use of marginal costing for decision making is universal.
Are revenues the same as net income?
Revenues are earnings from sales of products and net income is the difference between revenues and expenses.
Which sport has the largest revenues in the us?
Football has the largest revenues
What were Orowheat's revenues in 2001?
Orowheat had $268.6 million in revenues in 2001
What revenues did Timberland have in 1979?
Revenues topped $16 million in 1979
What revenues did Komag have in 2001?
Komag posted $282.6 million in revenues in 2001
What were revenues of Matrix Systems Inc. in 2001?
It had $9.2 billion in revenues in 2001
