Overview & learning objectives | Economics homework help


In decision making, planning and analysis, it is important to know the difference between the average and marginal cost of units produced. An average cost is calculated by adding up the total fixed and variable costs and dividing them by the units produced. The limitation here is that fixed costs- because they are already committed or “sunk” are not relevant in present decision-making because we have no control over them. What is relevant is the marginal cost, which is the cost of producing and selling an additional unit, something firms do have some influence over. Also relevant is marginal revenue, which is the additional revenue made by selling another unit. The goal here, always easier said than done, is the minimize marginal cost and maximize marginal revenue. 

A challenge faced by firms in deciding what opportunities to pursue with their limited resources is that the sacrifice of limited resources is made in the present, but the hoped-for rewards do not arrive until some time or times in the future. In order to evaluate these in the decision-making process, discounting is used, which is the process of translating future cash flows into today’s equivalent amounts. Doing this accurately, as you will see in this week’s learning, is a very desirable and valuable skill to develop and apply.

Place your order
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
The price is based on these factors:
Academic level
Number of pages
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more