Cost and Revenue Curves Chito Paulo ECO 561 November 16,2012 George Sharghi Cost and Revenue Curves Every concretion is concern about the good bottom line because it debates the company 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 price direct and comparing the marginal appeal and marginal taxation with application of the marginal cost (MC) marginal gross (MR) come near (McConnell, Brue, & Flynn, 2009).Â This approach is based on the fact that when MC = MR (which is advertd as the foreland of intersection of the curves) the economic proceeds reaches its maximal shine or minimum loss. The simulation on cost and revenue shows the interrelationship between the marginal cost and marginal revenue, and new(prenominal) factors that servicing a manager make rational de cisions to maximize profits. The interrelationships were portrayed in each of the scenario in the simulation. The first scenario involves choosing a rank to make up the product that provides the greatest financial and executable 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 farm chromatic juice. At point MC=MR the FarmFresh Company can produce more orange juice and realize a utmost profit compared to MC=M R of Florida. This result is the effects of ! cheaper prices of orange, concerns for environment guide to more efficient operation and reduction in cost, and so on In scenario two, the prices of orange dischargeped. 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 presentation that as the prices of...If you exigency to get a full essay, order it on our website: OrderCustomPaper.com
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