Economics & Glob Bus Apps Essay Example | Topics and Well Written Essays - 2000 words

Economics & Glob Bus Apps - Essay Example Task 1 Relationship between Marginal Revenue and Marginal Cost Marginal revenue is defined as the revenue generated by the sale of one extra unit of a product. Whereas total revenue means the entire revenue generated by the total quantity sold. (Sloman) Marginal cost is defined as the cost of producing one extra unit of a product. Whereas total cost refers to the sum of all the expenses incurred by a company, to produce all the units of the product. (Sloman) Profit is the excess of revenue over cost. Profit is defined as the return that a person gets on investment. In economics, there are three types of profit: normal profit, abnormal profit and subnormal profit. (Sloman) However, the term profit maximizing means that a firm is operating at a point where the difference between its total revenue and total cost is highest. (Lipsey & Harbury, 1992) The profit maximizing firms produce where their marginal revenue equals their marginal cost. Now common sense will suggest producing where t he revenue brought by an additional unit is the greatest and the corresponding cost is the lowest but at this point the total production and the total profit will be very low. Thus the firm will not be maximizing profit at all. So to fulfill the definition and requirement of profit maximization, a firm has to produce where MR=MC. In addition to that, MC and MR are the gradient functions of both TC and TR curves. So when both gradients get equal, the curves get parallel and the distance between them becomes the greatest. (Lipsey & Harbury, 1992) If a profit maximizing firm is faced with a situation where its MC increases its MR, then it will have to reduce its production. This is due to the simple rule that MR reduces as the production increases and MC increases with it. So to get back to the equilibrium, the firm will have to reduce the production. (Lipsey & Harbury, 1992) On the other hand, if the firm’s MR exceeds its MC, then it will have to increase its production. This i ncrease will cause the MR to fall and the MC to increase and the equilibrium will be attained. (Lipsey & Harbury, 1992) Task 2 Supply and Demand Concepts Elasticity of demand is defined as the measure of ‘responsiveness of the demand’ of any good or service with a change in its price. It can also be defined as a ratio of the ‘percentage change in the demand and the percentage change in the price’. Elasticity of demand is of three types. Elastic demand is the demand that responds greatly to a small price change. Inelastic demand shows a smaller change in quantity following a greater change in price. Unit elastic demand shows the same change in demand and price. Price Elasticity of Demand can be calculated by the following formula: Percentage change in quantity demanded / Percentage change in the price. (Sloman) Cross price elasticity of demand gives us the effect on the demand of one good due to a change in the price of other good. Therefore, cross price ela sticity of demand is a measure of the relationship between percentage changes in the demand of one

Leadership Behavior in the workplace Essay Example | Topics and Well Written Essays - 1250 words

Leadership Behavior in the workplace - Essay Example It also gives a narrative criticism on the article journal by examining female entrepreneurs’ management style as an application of a relational frame. The articulation of abstract in this article is decent. This is because the first line of the article contains the purpose of the research in an exhaustive manner. For example, this paper reports the result of a qualitative analysis of female entrepreneurs’ and their roles in their organizations using Relational Theory. The report of content analysis of group shows that women used a relational approach in working with employees and clients lacks the problem statement, which should appear in the second line of an abstract. The article does not explain the approach that the research employed in the third sentence of the abstract. Instead, it articulates some of the relational skills required in a place of work such as preserving, mutual empowering, achieving and creative team. The abstract indicates the findings of the research clearly in the fourth line. The findings show that Relational Theory is a useful frame in identifying and explicating women entrepreneur in their own bu siness. Finally, a concluding statement about the research is lacking in the abstract. The title of the article is appropriate. This is because it provides a thought of what is contained in the articles. It makes use of a particular theory, Relational Theory to answer subjectively the problem statement, leadership Behaviour in a work place (Xiaojun, 2014). Some of the in-text citation of the article is not in reference to American Psychology Association (APA) format. For example in page 1, the introduction of an in-text, citation at the beginning of a sentence should not make use of quotation marks as contained in this article. In addition, the use of page numbers in the in-text citation on the same reference applies to Modern Language Association (MLA) format. Therefore, this is a shortcoming since the referencing style used in the