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4 years ago

Is producer surplus and economic profit the same thing?

Business

1 answer:

Savatey [412]4 years ago

4 0

Economic profit is equal to total revenue - total cost, or q(P - ATC) where q = quantity, P = price, and ATC = average total cost. This is not the same thing as producer surplus.

When you draw supply and demand, the area between the supply and demand curves all the way up to the equilibrium point represents total surplus. The area above the equilibrium price and below demand is consumer surplus because it is where consumers pay less than what they value a good as. The area under the equilibrium price and above supply is producer surplus. It is the area where the producer can get a good for more than they value it.

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Provide an overview of the implementation process (e.g., the ERP life cycle, business process re-engineering, project management

Morgarella [4.7K]

By implementing an ERP system, companies expect to have a tool that covers all or most of their processes to improve their operation and productivity. Thus, a phase methodology to implement an ERP will help with this purpose as well as the clear and concise definition of vision, objectives and scope of the implementation, monitoring and risk mitigation plans, project socialization, review of the base processes, configuration, parameterization tests, training, etc.

1) Organization - Project Planning

This stage will aim to determine the resources of the project, both technical and human, in the same way the project planning agreements must be defined in terms of work times and schedules. The work team should be defined, with the roles and responsibilities of each role totally clear. It is also recommended at this stage to leave the software installed to guarantee, from the beginning, its correct operation in the company's own environment.

2) Modeling - Business Understanding

The objective of this stage will be to reach a common understanding between the specialist team of the system and the expert team of the company as to what are the current processes of the company and what are their expectations regarding the implementation of the ERP.

3) Parameterization - Configuration and Development

In this stage the tool must be configured under the parameters defined in the previous stage. If necessary, it must also comply with the special developments or configurations that are required. In addition, this stage must be the one indicated to carry out tests of the configuration as well as tests of any development or integration with other systems that have been required.

4) Final Preparation

The objective of this stage will be to cover all the pre-live requirements. This is where the training of end users should be carried out as well as that of the ERP system administrator. Additional at this stage, final system tests, system adjustments and preparation of initial balances for live departure must be met.

5) Start-up or Go Live

Finally, this stage is aimed at the implementation of the new system, its main objective is to leave the testing environment and start working on a definitive Production base. Additional focuses on the support required during the first weeks of work as well as the performance improvement adjustments that may be required. However, it is necessary to know that there is life after implementing an ERP.

6) Project Control

This is an independent stage from the previous phases and the project to implement an ERP should be fulfilled throughout the project. Its objective is to keep control of it with respect to planning compliance, delays, pending, risk analysis and mitigation, and any activity that supports quality control of the implementation.

8 0

3 years ago

Divisions M and T are two profit centers of a large, diversified and decentralized firm. Division M has a capacity to make 800,0

dalvyx [7]

Answer:

Option(c) is the correct answer to the given question .

Explanation:

The minimum transfer price is the marginal cost of making one item.or we can say that The net price covers direct labor, direct inventory and direct operating costs but avoids the expenditures cost that would be sustained by the distribution hub .

The minimum transfer price is equal to the variable cost So in the given question $90 is the variable cost from M to T therefore the minimum transfer price from M to T is $90 So that shareholder value is maximized.
All the other option will not give the shareholder value maximization that's why they are incorrect option .

4 0

3 years ago

Hellmann's is a brand owned by Unilever that produces mayonnaise, among other food products. If a marketing manager at Hellmann'

leonid [27]

Answer:

A) a weakness if the company does not have access to other expertise at Unilever.

Explanation:

A SWOT analysis will be used by Hellmann to identify the brand's strengths, weaknesses, opportunities and threats.

Strengths refer to internal attributes and resources that support business growth. Weaknesses are internal traits and resources that work against a successful outcome. Opportunities are external factors that the entity can use to develop the business. Threats are external factors that can lead to the downfall of the brand.

Based on the above, the lack of expertise by Hellmann's managers is a weakness.

6 0

3 years ago

Delaney Company is considering replacing equipment that originally cost $600,000 and that has $420,000 accumulated depreciation

Annette [7]

Answer:

$180,000

Explanation:

A sunk cost refers to the cost that is incurred by the businesses but this cost cannot be recovered by the businesses.

Here, given that

Cost of equipment = $600,000

Accumulated depreciation = $420,000

Cost of new machine = $790,000

In this situation, the sunk cost is determined by subtracting the cost that are related to previous year from the cost of the equipment.

Sunk cost = Cost of equipment - Accumulated depreciation

= $600,000 - $420,000

= $180,000

3 0

3 years ago

Which sentence best describes how a low supply of apples would affect their cost?

blagie [28]

I think it's A.
If supply increases, cost decreases.
If supply decreases, cost increases.

I hope it helped you!

7 0

3 years ago

Read 2 more answers