A firm’s implicit and explicit costs are explained for both short‑ and long‑run periods and total-, unit-, and marginal-cost concepts are addressed. These concepts prepare you for both ‘total-revenue, total-cost" and "marginal-revenue, marginal-cost" approaches to profit maximization. The law of diminishing returns is explained as an essential concept for understanding average and marginal cost curves. Analyze the general shape of each cost curve (AFC, AVC, ATC, MC) and the relationship they bear to one another. For example, explain the differences between the average and the marginal when a class with 40 students in it has a total weight of 6,000 pounds and a100 pound jockey joins the class versus a 350 pound sumo wrestler.

Problem 9-5. net present value and taxes [lo 1, 2] penguin productions is evaluating a film project. the president of penguin estimates that the film will cost $20,000,000 to produce. in its first year, the film is expected to generate $16,500,000 in net revenue, after which the film will be released to video. video is expected to generate $10,000,000 in net revenue in its first year, $2,500,000 in its second year, and $1,000,000 in its third year. for tax purposes, amortization of the cost of the film will be $12,000,000 in year 1 and $8,000,000 in year 2. the company’s tax rate is 35 percent, and the company requires a 12 percent rate of return on its films. required what is the net present value of the film project? to simplify, assume that all outlays to produce the film occur at time 0. should the company produce the film?

What type of budget is stated? a budget is a type of financial report that scrutinizes the inflow and outflow of money in a given financial year.

Aproduct has a demand of 4000 units per year. ordering cost is $20, and holding cost is $4 per unit per year. the cost-minimizing solution for this product is to order: ? a. 200 units per order. b. all 4000 units at one time. c. every 20 days. d. 10 times per year. e. none of the above