Economic cost

new entrant if the new entrant meets their criteria. In addition, another barrier that does not discourage new entrants from entering the health club industry is the relatively low switching cost. These costs manifest themselves in the way of initiation fees with a median of $150. With low switching costs, a competitor has the ability to enter the market and take customers from other competitors. As mentioned previously, new entrants do not necessarily have to invest a large amount of capital

RBUS2900 Course Summary Lecture 2 – Scientific thinking and building blocks of research GOOD Research entails Clear research objectives Sound research design Contain sufficient detail to allow another researcher to repeat the research Data should reveal its significance and use appropriate methods of analysis Conclusions should be confined to those justified by the data Should include the flaws in the design and their impact upon findings A good researcher reputation gains more respect

would like to say the profits of the motel should increase with the increase of economic growth around it. If the economic growth is the Las Vegas strip then instead of shutting down add some slot machines, neon lights, and some type of corny theme. In that situation the opportunity cost gives you a possibility to stay in business and do some improvements to grow the motel’s profitability. Then again if the economic growth was large hotels moving in, your motel is now the Knights Inn for $29 a

Reduction of Costs to Maximize Profit returns (Production Firms) Introduction Cost leadership implies that an organization or business tries to have low costs so that they can sell their products and services at low costs. This type of leadership strategy allows them to make profits even with low costs than their competitors. It places the business at a position where it can effectively compete on the basis of price with both the new entrants in the industry and existing competitors. It also creates

with the aid of outsourcing that organizations attempt to reduce the overall cost of sustenance and augment organizational productivity in comprehensive terms. The activity of outsourcing enables the organization to render higher level of emphasis on core activities of business. In the past thirty years, various researchers have undertaken researches to support outsourcing as a mechanism for bringing down organizational costs in a substantial manner. But the comprehensive impact of outsourcing remains

Production possibilities curve data   | A | B | C | D | E | F | Capital goods | 150 | 140 | 120 | 90 | 50 | 0 | Consumer goods | 0 | 20 | 40 | 60 | 80 | 100 | | | | | | | | In Exhibit 2-4, the concept of increasing opportunity costs is represented by the fact that: a) Greater amounts of capital goods must be sacrificed to produce each additional unit of consumption goods. Question 4 (0.5/0.5) As shown in Exhibit 8-3, in order to maximise its profit, what price should

Internal Strengths The current procurement framework perceives the significance of ‘transparency, competitiveness, fairness and the need to promote a sense of integrity in the system to secure best value for money’ . E-bidding was initially launched in the States of Kerala, Karnataka, Madhya Pradesh, Andhra Pradesh by Directorate General of Supplies and Disposal. After the success of e-bidding in the above States, e-bidding was launched even at the Central Government Level. In fact, a national program

TASK 1: The concept of opportunity cost and marginal analysis will be used to take the final decision. The benefits and costs (both implicit and explicit) of both the alternatives that Rachael has will be calculated to support the answer. Case 1: If she goes to the summer school/ University. Her explicit cost, would comprise of – I) Cost of tuition and textbooks = $1700 II) Housing and other expenses = $600 Total explicit costs (I+II) = $2300 For the implicit cost, it will be the time she is devoting

d. Jacob’s opportunity cost is equal to Harold’s. ANS: B PTS: 1 DIF: Medium NAT: Reflective Thinking 7. Jake can wash 6 cars or mow 3 lawns during the same time. His marginal cost of washing a car is: a. mowing one-third lawn. b. mowing half a lawn. c. mowing one lawn. d. mowing 2 lawns. ANS: B PTS: 1 DIF: Medium NAT: Analytic 8

2.0 Economics 2.1 Time to break even / positive cash flow ZipCar will break even in year 2 of operation. A positive cash flow is anticipated. 2.2 Capital Requirements Capital requirements for ZIpCar is $1.7million. 2.3 Free cash flow characteristics • Sales