Cost and Revenue Curves

Cost and Revenue Curves Chito Paulo ECO 561 November 16,2012 George Sharghi Cost and Revenue Curves Every adhesiveness is concern about the good bottom line because it debates the society can sustain successful operation. The management determines strategy and methods to maximize the economic benefit or to minimize economic s conductding of the company. One turn up is to determine the output and expense direct and comparing the marginal follow and marginal gross with application of the marginal cost (MC) marginal tax income (MR) draw near (McConnell, Brue, & Flynn, 2009).  This approach is based on the fact that when MC = MR (which is foreshadowd as the foreland of intersection of the curves) the economic cabbage reaches its maximal sink or minimum loss. The simulation on cost and revenue shows the interrelationship between the marginal cost and marginal revenue, and new(prenominal) factors that armed service a manager make rational decisions to maximize profits. The interrelationships were show in each of the scenario in the simulation. The first scenario involves choosing a recite to make up the product that provides the greatest financial and available 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 maturate chromatic juice. At point MC=MR the FarmFresh Company can produce more orange juice and realize a upper limit profit compared to MC=MR of Florida. This result is the effects of cheaper prices of orange, concerns for environment guide to more efficient operation and reduction in cost, etcetera In scenario two, the prices of orange dismissped. 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 display that as the prices of...If you exigency to get a full essay, influence it on our website: OrderCustomPaper.com

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