Business Costs, Revenues And Profit
Overzicht
Behind every price tag sits a calculation: how much did this cost to make, how much money will selling it bring in, and is there anything left over once the bills are paid? Every business, from a market stall to a multinational, answers these same three questions using the same handful of formulae.
In this lesson you will calculate total and average cost, total revenue and profit, and see why these figures behave differently in the short run, when at least one factor of production is fixed, compared with the long run, when a business can change its entire scale of operation. You will then explore economies and diseconomies of scale, and see how the long run average cost curve shows a business exactly where it is most efficient to operate.
Doelstellingen
- Definition and use of formulae to calculate total revenue, total costs, total fixed costs, total variable costs, average (total) costs, profit
- Economies of scale: definition, types of internal economies of scale (purchasing, marketing, technical, financial, managerial, risk bearing), definition of external economies of scale, types of external economies of scale (skilled labour, infrastructure, access to suppliers, similar businesses in area)
- Diseconomies of scale: definition, types (bureaucracy, communication problems, lack of control, distance between top management and workers), the use of long run average cost (LRAC) curve diagram annotated to show internal economies of scale and diseconomies of scale and where the business will be most efficient
Lesnotitie
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Lesevaluatie
Gefeliciteerd met het voltooien van de les op Business Costs, Revenues And Profit. Nu je de sleutelconcepten en ideeën, het is tijd om uw kennis op de proef te stellen. Deze sectie biedt een verscheidenheid aan oefeningen vragen die bedoeld zijn om uw begrip te vergroten en u te helpen uw begrip van de stof te peilen.
Je zult een mix van vraagtypen tegenkomen, waaronder meerkeuzevragen, korte antwoordvragen en essayvragen. Elke vraag is zorgvuldig samengesteld om verschillende aspecten van je kennis en kritisch denkvermogen te beoordelen.
Gebruik dit evaluatiegedeelte als een kans om je begrip van het onderwerp te versterken en om gebieden te identificeren waar je mogelijk extra studie nodig hebt. Laat je niet ontmoedigen door eventuele uitdagingen die je tegenkomt; beschouw ze in plaats daarvan als kansen voor groei en verbetering.
- Total cost is calculated as: A) Total fixed costs minus total variable costs B) Total fixed costs plus total variable costs C) Total revenue minus profit D) Average cost multiplied by price Answer: B
- A firm's total cost of producing 400 units is GBP 8,000. What is its average cost? A) GBP 8 B) GBP 20 C) GBP 32 D) GBP 3,200,000 Answer: B
- A firm sells 150 units at GBP 30 each and has total costs of GBP 3,800. What is its profit? A) GBP 500 B) GBP 700 C) GBP 4,500 D) GBP 8,300 Answer: B
- Which of the following is an example of an internal economy of scale? A) A shared pool of skilled local workers B) A large firm negotiating a bulk-buying discount from suppliers C) New roads built to serve a growing industrial area D) Specialist suppliers setting up nearby to serve an industry cluster Answer: B
- On a long run average cost (LRAC) curve, the minimum efficient scale is: A) The output level where fixed costs are highest B) The smallest output at which long run average cost reaches its lowest point C) The output level where profit is zero D) The largest possible output a firm could ever produce Answer: B
Beschikbaar in de Green Bridge-app
Download de Green Bridge CBT-app op je telefoon of computer voor toegang tot volledige lesnotities, oefenvragen en meer.
Beschikbaar in de Green Bridge-app
Download de Green Bridge CBT-app op je telefoon of computer voor toegang tot volledige lesnotities, oefenvragen en meer.
Aanbevolen Boeken
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