Question.3193 - Is it realistic to assume that the economic concept of operating at the point where marginal revenue and marginal cost are equal can be applied to real-world strategic planning while at the same time marrying this concept to the capital budgeting process? If so, how can that be done? If the concept is applied, how confident should we be that the firm will achieve the point where marginal cost and marginal revenue are equal? Your initial response should be two or three paragraphs in length. After you have posted your initial response, read all of your classmates' responses and comment on at least two other postings. Write your response as a one-page memo.
Answer Below:
In xxx real xxxxx a xxxxxxx cannot xxxxxxx its xxxxxxx which xx beyond xxx control xxx it xxx control xxx costs xx which x company xxx full xxxxxxx The xxxxxxxxx cost xxx the xxxx of xxxxxxx together xxxxx marginal xxxx The xxxx of xxxxxxx of x company xx composed xx cost xx equity xxxxxx cost xx preference xxxxxx and xxx interests xxxxx it xxxx for xxxxx Depending xx the xxxxxxxxx of xxx company x capital xxx cost xx capital xxx vary xxxxxxxxx it xxx be xxxx that xxx marginal xxxx of x company xx very xxxxxxxxx to xxxxxxxxx in xxx actual xxxxx and xx a xxxxxx it xxxxxxx very xxxxxxxxx for x company xx compare xxx marginal xxxxx with xxxxxxx to xxx marginal xxxxxxx The xxxxxxxx objective xx any xxxxxxx is xx maximize x shareholder xxxxx the xxxx of xxxxxxxx costs xxxxxxxx revenue xxx maximization xx profit xx a xxxxxx formula xxxxxxxx in xxxxxxxxx there xx consistency xx the xx and xx curves xxx in xxxxxxx there xxx many xxxxxxxxxx which xxxxxxxxx the xx and xx When x new xxxxxxx is xxxxx launched xx a xxxxxxx the xxxx of xx MR xxx be xxxx very xxxxxx to xxxxxxxxx the xxxxxx quantity xxxxxxx the xxxxxxxx of xxxx targeted xxxxxxxx depends xx the xxxxxxxx of xxx cost xxxxxxxxx and xxx revenue xxxxxxxxx A xxxxxxxxxxxxx company xxxxxx always xxxxxxx such x quantity xx which xx MR xx that xx can xxxxxxxx its xxxxxx The xxxxxxx of x company xx produce xxx targeted xxxxxxxx where xx MR xx dependent xx many xxxxxxx which xxx out xx the xxxxxxx s xxxxxxx In xxxxxxx the xxxxxxx of x company xxxxxxx on xxx sale xxxxx the xxxxxxx has xxxx ways xx boost xxx sale xxx the xxxxxx market xx the xxxx dependent xxxxxx which xxxxxxxxxx its xxxxxx sale xxxxxx The xxxxxxxxx about xxx company xxxxx a xxxxxxx has xxx be xxx mostly xx inaccurate xxx if xxx company x estimates xxx wrong xx a xxxxxxx extent xxxx it xxx aim xx a xxxxx level xx production xx this xxxx even xx the xxxxxxx is xxxxxxxxx at x point xxxxx its xx MR xxx or xxx other xxxxxx can xxxxxx and xx turn xxxxx change xxx level xx required xxxxxxMore Articles From Accounting
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