Cost and Revenue Curves

Cost and Revenue Curves Chito Paulo ECO 561 November 16,2012 George Sharghi Cost and Revenue Curves Every confederacy is concern about the good bottom line because it debates the society can sustain successful operation. The management determines strategy and methods to tap the economic benefit or to minimize economic s conductding of the company. One turn up is to determine the output and value direct and comparing the marginal equal and marginal tax taxation with application of the marginal cost (MC) marginal revenue (MR) nuzzle (McConnell, Brue, & Flynn, 2009).  This approach is based on the fact that when MC = MR (which is requestd as the foreland of intersection of the curves) the economic scratch reaches its maximal travel or minimum loss. The simulation on cost and revenue shows the interrelationship between the marginal cost and marginal revenue, and new(prenominal) factors that dish out a manager make ration al decisions to maximize profits. The interrelationships were picture in each of the scenario in the simulation. The first scenario involves choosing a narrate to make up the product that provides the greatest financial and usable 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 form chromatic juice. At point MC=MR the FarmFresh Company can produce more orange juice and realize a supreme profit compared to MC =MR of Florida. This result is the effects o! f cheaper prices of orange, concerns for environment take to more efficient operation and reduction in cost, and so forth In scenario two, the prices of orange toss outped. 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 demo that as the prices of...If you exigency to get a full essay, mark it on our website: OrderCustomPaper.com

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