Economics Assignment - Marginal Revenue

Added on -2020-02-05

| 9 pages| 2731 words| 78 views

Trusted by 2+ million users,
1000+ happy students everyday

Showing pages 1 to 3 of 9 pages

Economics Forbusiness1
TABLE OF CONTENTSINTRODUCTION...........................................................................................................................3BENEFITS FOR FIRM ..................................................................................................................3COST IMPACT ON FIRM..............................................................................................................5RECOMMENDATION...................................................................................................................6CONCLUSION................................................................................................................................7REFERENCES................................................................................................................................82
INTRODUCTIONMargin revenue is the additional revenue that can be attain by any firm by producingextra unit. Marginal revenue of monopolist is always equal to the price of that particular goods.Recently, government should focuses on level where they reduce total average cost by cuttingdemand curve level (Baye, 2010). On this project we study, by cutting demand curve levelprovide benefits to the country are discussed in an appropriate manner. Furthermore, it will alsoprovide information in regard to average total cost curve. BENEFITS FOR FIRM Additionally, there are several benefits that any firm receive through application of levelwhere total average cost curve cut the demand curve. With the help of this benefits, company canachieved its goals and objectives in a competitive environment by presenting it into the market inan effective manner. Along with that, there is another benefit for an organisation that is marginalrevenue intersecting the marginal cost (Bold and Vega, 2003). With this company can achievetheir long term opportunities goals by controlling overall cost of a firm that leads toimprovement in customer base. These demand curve allow the firm to set the price of goods andservice at that level where customer or citizens are ready to pay at fair price (Lee, 2014). Thisleads to improvement in turnover of a company by increasing in firm's sales for products andservices. In addition to this, various loss and risk that are arise in the firm will also be reduced atsome desired level that help them in attaining goals and objectives of a firm. In order to developbest and better learning there is only few formulae that help in reduction overall total cost(Cardoza and Fornés, 2011). Average Total cost = Total cost/ Quantity30000/1000= 30, This formulae tells that total cost of a firm is 30,000 and the quantityof a product is 1000 so the total average cost arise is 30. Let assume that the price of a goods andservices is 100 which said that an organisation face various problems in relation to loss. Lets inanother situation we take price that is assume to be 400 it means that firm overall margin ofprofit becomes advanced. But in that situation company suffer loss in long term when it increaseprice of a product it will reduce demand of a product in future.(Ceccherini-Nelli and Priebe,2007). Lets take an example. A firm offer service that is 400 pounds and the total average cost is3

Found this document preview useful?

You are reading a preview
Upload your documents to download
or
Become a Desklib member to get accesss

Premium

$45

Q&A Library Access

Chat support

12

Document Unlocks

4

Answer Unlocks

Students who viewed this