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 xxxxx s xxxxxxx the xxxx of xxxxxxx may xxxx Therefore xx can xx said xxxx the xxxxxxxx cost xx a xxxxxxx is xxxx difficult xx calculate xx the xxxxxx world xxx as x result xx becomes xxxx difficult xxx a xxxxxxx to xxxxxxx its xxxxxxxx costs xxxx respect xx its xxxxxxxx revenue xxx ultimate xxxxxxxxx of xxx company xx to xxxxxxxx a xxxxxxxxxxx value xxx rule xx marginal xxxxx marginal xxxxxxx for xxxxxxxxxxxx of xxxxxx is x useful xxxxxxx Although xx economics xxxxx is xxxxxxxxxxx in xxx MC xxx MR xxxxxx but xx reality xxxxx are xxxx parameters xxxxx influence xxx MC xxx MR xxxx a xxx product xx being xxxxxxxx in x company xxx rule xx MC xx can xx used xxxx easily xx calculate xxx target xxxxxxxx However xxx accuracy xx this xxxxxxxx quantity xxxxxxx on xxx accuracy xx the xxxx estimates xxx the xxxxxxx estimates x manufacturing xxxxxxx should xxxxxx produce xxxx a xxxxxxxx at xxxxx MC xx so xxxx it xxx maximize xxx profit xxx ability xx a xxxxxxx to xxxxxxx its xxxxxxxx quantity xxxxx MC xx is xxxxxxxxx on xxxx factors xxxxx are xxx of xxx company xxxxx 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 xxxxx s xxxxxxxxx are xxxxx to x greater xxxxxx then xx may xxx at x wrong xxxxx of xxxxxxxxxx In xxxx case xxxx if xxx company xx operating xx a xxxxx where xxx MC xx one xx the xxxxx factor xxx change xxx in xxxx would xxxxxx the xxxxx of xxxxxxxx outputMore Articles From Accounting
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