Eco 402 app main se koi parhne wala banda bandi hai tou plzzzzzzzzzzzz is question ki zara hints de dy mujhe

From: Khalid Ali <khalidali81@yahoo.com>
Date: Thu, Jun 28, 2012 at 1:10 AM
Subject: ))))Vu & (((( Re: █▓▒░(°TaNoLi°)░▒▓█ Eco 402 app main se koi parhne wala banda bandi hai tou plzzzzzzzzzzzz is question ki zara hints de dy mujhe
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Dear Net Friend

The answer of your query, is given below:

 

******************

'Economic Profit : Definition

 

The difference between the revenue received from the sale of an output and the opportunity cost of the inputs used. This can be used as another name for "economic value added" (EVA).

 

It is quite different from "accounting profit", which is what most people generally mean when they refer to profit. 

In calculating economic profit, opportunity costs are deducted from revenues earned.  Opportunity costs are the alternative returns foregone by using the chosen inputs. As a result, you can have a significant accounting profit with little to no economic profit.

For example, if you invest Rs.100,000 to start a business and in that year you earn Rs.120,000 in profits. Your accounting profit would be Rs.20,000. However, say that same year you could have earned an income of Rs. 45,000 if you had been employed. Therefore, you have an economic loss of Rs.25,000.

 

 Calculate Economic Profit with the Marginal Decision Rule

The marginal decision rule states that you should expand production if the price is greater than the marginal cost. Conversely, you should decrease production if the price is less than the marginal cost. Price refers to how much your revenue will go up from selling one more item, while marginal cost refers to how much  your costs go up from selling one more. Calculating your profit will help you determine how to use the marginal decision rule

1.      Calculate your profit by subtracting the total cost of production from the total revenue. As an example, assume you run a small cricket bat manufacturing company, and your total costs are Rs.10,000 and your total revenue is Rs. 20,000. Your profit is Rs. 10,000.

2.      Determine the marginal cost of producing one more item. For example, the marginal cost of producing one more cricket bat is Rs.25.

3.      Determine the price of producing that one more item. For example, the price of producing one more cricket bat is Rs. 30.

4.      Subtract the marginal cost from the price and add it to the profit. If the figure you add to the profit is a positive number, then you should expand production. In the example, you would subtract Rs.25 from Rs. 30 and get Rs.5. Because you would make Rs. 5 in profit by producing one more Bat, you should go ahead and expand the production.

 

*****************
Khalid Ali

Karachi

 

From: Th3 Blu3 h0p3 <nicefriend1000@gmail.com>
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Sent: Thursday, June 21, 2012 5:04 PM
Subject: █▓▒░(°TaNoLi°)░▒▓█ Eco 402 app main se koi parhne wala banda bandi hai tou plzzzzzzzzzzzz is question ki zara hints de dy mujhe

 Eco 402

app main se koi parhne wala banda bandi hai tou plzzzzzzzzzzzz

is question ki zara hints de dy mujhe.............*


thnxxxxxxxxxxxxxin advance

What production decision firm will take for future after calculating economic profit?

Allah shows you the true nature of people in the most mysterious ways.......*
Be patient!

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