To calculate marginal cost, divide the change in production costs by the change in quantity. The purpose of analyzing marginal cost is to determine at what point an organization can achieve economies of scale to optimize production and overall operations.
<h3>What is
marginal cost?</h3>
The marginal cost in economics is the change in total cost that occurs when the quantity produced is increased, or the cost of producing additional quantity.
According to the law of declining marginal utility, as consumption increases, the marginal utility obtained from each extra unit decreases.
Marginal cost is an important concept in economic theory because a corporation seeking to maximise profits will produce until marginal cost (MC) equals marginal revenue (MR) (MR). After then, the cost of creating an additional item will outweigh the money generated.
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Answer:When the federal government spends more money than it receives in taxes in a ... spending over time in nominal dollars is misleading because it does not take ... defense spending as a share of GDP has generally declined since the 1960s, ... Healthcare expenditures include both payments for senior citizens (Medicare), ...
Explanation:
Car leases or phone bills that have contracts
Price is the amount charged by the company for its goods or services. The price to be charged by the company to earn a profit of $2 is $8.
<h3>What is Price?</h3>
Price refers to the quantity of money charged for a product or service. Simply, price is the value of a good or service. It s an important element of the marketing mix.
The given question states that three percent of the product of the company are faulty and costs the company $200. The company desires to make a profit of $2 per product.
Let x be the price per product.
The price to be charged for each product can be determined as:
Therefore the price to be charged is $8.
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A simultaneous game is said to exist when:<u> firms choose their strategies at the same time as their rivals.</u>
<h3>
What is a Simultaneous Game Theory?</h3>
In game theory, a simultaneous game or static game is a game where each player chooses their action without knowledge of the actions chosen by other players. Simultaneous games contrast with sequential games, which are played by the players taking turns (moves alternate between players).
In other words, both players normally act at the same time in a simultaneous game. Even if the players do not act at the same time, both players are uninformed of each other's move while making their decisions.
In a Simultaneous Game, players only have one move and all players' moves are made simultaneously. The number of players in a game must be stipulated and all possible moves for each player must be listed. Each player may have different roles and options for moves. However, each player has a finite number of options available to choose.
Therefore, we can conclude that the correct option is A simultaneous game is said to exist when:<u> firms choose their strategies at the same time as their rivals.</u>
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