The concept of marginal cost, while endowed with notable advantages, also carries inherent drawbacks when applied in economic contexts. It behooves major corporations to meticulously compute their marginal costs and discern optimal strategies tailored to their specific circumstances, adopting a nuanced appr...
How can marginal cost be calculated?Marginal cost:Marginal cost refers to addition to total cost when one extra unit of output is produced. The concept of marginal cost is important as a profit maximizing firm produces an output level such that marginal revenue exactly equals marginal cost....
The marginal revenue is the extra revenue earned when another unit is produced. The marginal cost is the extra cost incurred when another unit is produced. These two interact to give a firm its profit-maximizing output. Answer and Explanation:...
Compute unit costs. This is the additional cost, per unit, needed to produce your product. For example, assume that it costs $1 per unit to produce your product. Calculate revenue. This is the amount you collect for each unit of your product sold. For example, you might sell your produc...
. . 2-14 clip Function: Clip values to specified range . . . . . . . . . . . . . . . . . . . . . . 2-14 mean and median Functions: Compute weighted statistics . . . . . . . . . . . 2-14 iqr Function: Return first and third quartiles . . . . . . . . ....
You compute the value of the penalty by multiplying the replacement cost ($500,000) with the multiplier, 0.25 (1 – 0.75). So by violating the coinsurance clause, you are not only unable to receive the full replacement cost, but you also have to pay a hefty penalty. ...
You compute the value of the penalty by multiplying the replacement cost ($500,000) with the multiplier, 0.25 (1 – 0.75). So by violating the coinsurance clause, you are not only unable to receive the full replacement cost, but you also have to pay a hefty penalty. Conclusion Coinsurance...
You can use this useful marginal cost calculator to compute the cost incurred when producing additional units of a given product. Marginal cost is the additional cost of producing further units of a product or service. You can compute marginal cost by dividing the total expenses incurred when pro...
Refer to the below data. How much is the marginal cost of the 6th unit of output? OutputAverage Fixed CostAverage Variable Cost 1$50.00$100.00 2$25.00$80.00 3$16.67$66.67 4$12.50$65.00 5$10.00$68.00 6$8.37$73.33 7$6.14$80.00 8$6.25$86.50 ...
According to economic theory, a business should continue operating so long as its marginal return (marginal product) exceeds its marginal cost. While a relatively simple calculation, when using a large amount of data, a software package like Excel can make it easier and quicker to compute. ...