To understand this, a case study involves a theater that has seating for 1,200 people. For the past days, tickets have been sold out since they were affordable, cost $ 5 per ticket. The manager would like to increase tickets…
Download file to see previous pages...
As an outcome, one can have a considerable accounting profit with slight to no economic profit. In the case scenario, cost of preparing tickets and preparing the theater could be price of input and the ticket sale is the revenue.
Reduction in sale of tickets will reduce with increase of prices. The business could continue to make accounting profit; however, this may not sustain the business for long. Economic profit role is to ensure that resources are directed toward the practices that generate the most profit. Profit is a sign that the clients of that service or good want more of it (Malloy, 2004). The action of manager would not generate the most profit out of the theater due to decrease in attendance. If the prices are doubled and attendance reduce by more than a half due to other factors like immediate competitors then the business would
...Download file to see next pagesRead More
The third section is an illustration of the implication that an oligopolistic banking sector is likely to have over the residents of a nation. The fourth section depicts the situation in Australia where nationals have been immensely protesting against the oligopolistic banking sector and finally the last section summarises the contents of the entire paper.
MBS are loans that are normally purchased from mortgage companies, banks and originators and then they are assembled into groups by a private entity, a governmental or a quasi governmental. The securities are then offered by the entity. These securities are offered in a process called securitization
Many economists consider these payments as vital in attracting new resources and setting up a business. These payments play special part in coordination of these resources. Most of the times these payment perform their function efficiently, but sometimes they do not perform the functions well, when theses resources deem monetary motives as secondary and are working for some other aim for e.g.
If this law is passed it will require the physicians to reveal their relationship with profit making medicine organization.
While it is clear that many doctors are receiving a lot of money from pharmaceutical companies, most consumers are unaware of how much these physicians are getting.
As in most other developed countries, monetary policy operates in the UK mainly through influencing the price of money, that is, the interest rate. In May 1997 the Government gave the Bank independence to set monetary policy by deciding the level of interest rates to meet the Government's inflation target.
many states; however in Texas, which demonstrates percentages of both obese children and adults higher than national averages, childhood obesity presents a particular problem (TDSHS 2010). Analysis of this issue is important for health care providers, educators, and parents as
When a new technology makes another one obsolete in terms of economic profit, a firm such as Firm B which uses the new technology will incur less explicit and implicit costs while making its products and services more effective and efficient. This attracts more customers