Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Hello class! I had trouble with this simulation skipping or the screen lagging but it seems to happen when we have bad storms. Unfortunately, it
Hello class! I had trouble with this simulation skipping or the screen lagging but it seems to happen when we have bad storms. Unfortunately, it is affecting my internet, but I did try my best to do what I could with the simulation, and I was able to get a screenshot. A crucial factor in whether I would enter or exit a market would be determined by competitive producers of the same product or service (like in the simulation). What are other companies charging for the same product or service and whether it would be a competitive market where I can make money, break even, or potentially lose profits? If a market were oversaturated most of the time, I would choose to exit it. If my average return were negative, it would not be worth my time, resources, or money to stay in the market. I could use marginal cost to decipher the amount of product to produce. Margin cost helps me figure out where my optimal profit and production are and if adjustments need to be made. "The purpose of analyzing marginal cost is to determine at what point an organization can achieve economies of scale to optimize production and overall operations. If the marginal cost of producing one additional unit is lower than the per-unit price, the producer has the potential to gain a profit." (Tuovila,2022) "fixed costs do not vary with the quantity of output produced. They are incurred even if the firm produces nothing at all." (13.3 A) Fixed costs do not make a difference in a business's short term because fixed costs are costs that must be paid regardless of profits. Fixed costs can be things like rent for a warehouse or storefront or a bookkeeper to keep track of your business's finances. In the long term, your fixed cost or variable cost could change whether your business is profitable and worth being in the market. It could mean you do not have a choice on whether you wish to stay or leave the market, your business could no longer be profitable, and you would have to close the doors forcing you to exit the market
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started