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Nonlinear equations
In the last section, we will consider the non-linear total cost equation.
These are equations of total cost that are more complex than the linear case, especially in the case of minimal costs where the calculation is used in the analysis. For this exercise, let us consider the following two equations:
TC = 34Q3 - 24Q + 9
TC = Q + log (Q + 2)
The most accurate way of calculating marathon values is by calculating. Unit cost is important, the rate of change of total cost, so it is the first derivative of total cost. Therefore, using given equation 2 for total cost, take the first derivate of total cost to find the expression for marginal value:
TC = 34Q3 - 24Q + 9
TC '= MC = 102Q2 - 24
TC = Q + log (Q + 2)
TC '= MC = 1 + 1 / (Q + 2)
So when the total cost is 34Q3 - 24Q + 9, the average value is 102Q2 - 24 and when the total cost is Q + log (Q + 2) the interim value is 1 + 1 / (Q + 2). To find a small income for a given quantity, simply substitute the value for Q in each expression for a small fee. For the total value, the formula is given.
A constant value is found when Q = 0 for the equation. When the total cost is 34 Q3 24Q + 9, the fixed value is 34 * 0 - 24 * 0 + 9 = 9. This is the same answer we get if we eliminate all passwords, but this will not always be the case. When the total cost is Q + log (Q + 2), the fixed value is 0 + log (0 + 2) = log (2) = 0.30. So even though all the words in our equation have Q in them, our constant value is 0.30, not 0.
Remember that the total variable cost is found by:
Total variable cost = total cost - fixed cost
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Using the first equation, the total cost is 34Q3 - 24Q + 9 and the fixed value is 9, so the total variable value is 34Q3 - 24Q.
Using the second total value equation, the total cost is Q + log (Q + 2) and the fixed value is log (2), so the total variable value is Q + log (Q + 2) - 2.
To get the average total value, take the total value equation and divide them by the question. So for the first equation with a total value of 34Q3 to 24Q + 9, the total value is 34Q2 - 24 + (9 / Q). When the total cost is Q + log (Q + 2), the average total value is 1 + log (Q + 2) / Q.
Similarly, divide the fixed cost by the number of units manufactured to obtain the average fixed cost. So when the fixed cost is 9, the average fixed cost is 9 / Q. And when the fixed cost is set (2), the average fixed cost is the log (2) / 9.
In the first given equation, the total variable value is 34Q3 - 24Q, so the average variable value is 34Q2 - 24Q. In the second equation, the total variable value is Q + log (Q + 2) - 2, so the average variable value is 1 + log (Q + 2) / Q - 2 / Q.
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An economic system : An economic system is a system of production, management of resources, and distribution of goods and services in a society or geographical area. Global economic systems are divided into four major categories: Traditional Economic System, Planned Economic System, Market Economic System and Mixed Economic System. We will now study only the market economy system. What is a Market Economic System? A market economy is an economy in which all economic decisions and pricing of goods and services are made by agreement between sellers and buyers, with or without government intervention.
Based on the 1993 Constitution, Cambodia is a country that implements a market economy system that allows citizens to freely sell their products in the market, except for goods or services that are prohibited by law. In a free market system, sellers and buyers can trade freely when they agree on the price of a good or service.
For example, suppose the seller intends to sell his motorcycle for $ 1,800 and the buyer intends to buy the motorcycle for $ 1,700. The transaction will take place when they agree on a price. Indeed, the theoretical foundations of the market economy were developed and developed by ancient economists such as Adam Smith-1723-1790, David Ricardo-1772-1823, and Jean-Baptiste. (Jean-Baptiste Say-1767-1832) and so on. They believe that protectionism and government intervention will lead to economic inefficiencies, which will make life more difficult for the people.
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Here are six characteristics of a market economy:
Private Property: Most goods and services are owned by private individuals. Owners can make legal contracts to buy, sell or rent their property. In other words, the owners have the full right to benefit from the property they own.
Freedom of Choice: Owners have complete freedom to produce, sell and buy goods and services in a competitive market. The two conditions they have to meet are, firstly, the price at which they are willing to trade, and secondly, the amount of resources they have. Motive of Self-Interest: Individuals always sell their goods to the person who dares to offer the highest price while negotiating the price.
Although this reason may seem selfish, it benefits the economy in the future. That's because today's auction system sets prices for goods and services that reflect their market value. Competition: The pressure of competition will lower prices and ensure the delivery of quality and efficient goods and services.
System of Markets and Prices: A market economy relies on an efficient market to sell goods and services. That is where all buyers and sellers have equal access to the same information. Limited Government: Government has a role to play in ensuring that markets are open and functional.
The Ministry of Commerce, for example, is the authority responsible for promoting trade and the normal functioning of the market. However, this ministry does not have the authority to set the prices of goods and services on the market.
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Capitalism refers to the economic, social and political importance of capitalism. Capitalism is not a clear definition Different economists have different definitions of capitalism, capitalism in general is a system of economics or economic sociology in one system, most of the means of production are controlled by individuals.
After all, with the means to hire workers to produce equipment to create a value, the price is divided into five parts: tax, rent, profit, labor cost and entrepreneurship. In this system, goods and services by means of currency are circulating in the free market. Deciding on individual investments, production and sales by companies, and overseeing key industries and businesses and competing with each other, acting in accordance with their own interests.
Economic growth : the process by which a nation's wealth increases over time. Although the term is often used in discussions of short-term economic performance, in the context of economic theory it generally refers to an increase in wealth over an extended period by John Maynard Keynes.
Economic efficiency : when all goods and factors of production in an economy are distributed or allocated to their most valuable uses and waste is eliminated or minimized.
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Demand is the desire or desire for a good or service that contains the goods, services or equipment necessary to operate legally for those goods or services.
- Requirements:
- Total demand
- Requirements
- Marshallian Requirements Function
- Supply is the supply is defined as the total number of products or services available for purchase at a fixed price. The core components of this economy seem vague, but you can find examples of supply in everyday life.
- Definition
- The law of supply states that the assumption that everything is kept constant, the quantity supplied for good increases as prices rise. In other words, the quantity required and the price have a positive relationship.
- The relationship between supply and demand can be illustrated as follows:
Supply demand price
Constant Rise up Rise up
Constant Fall Fall
Increase Constant Fall
Decrease Constant Increase
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Comparative Economic Systems : the sub-field of economics dealing with the comparative study of different systems of economic organization, such as capitalism, socialism, feudalism and the mixed economy. It is widely held have been founded by the economist Calvin Bryce Hoover. There are four types of economies:
Pure Market Economy.
Pure Command Economy.
Traditional Economy.
Mixed Economy.
The first is the traditional economy, which is the oldest economic system and is used in parts of Asia, Africa, and South America. Traditional economies organize their economic affairs the way they have always done (i.e., tradition).
There are many different types of economic systems used throughout the world. Some examples are socialism, communism, and capitalism. The United States has a capitalistic system. Comparative economic systems analysis is grounded in the creation of meaningful categorical differences between national economies (economies that are already differentiated on the basis of political boundaries).
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Economic risk is referred to as the risk exposure of an investment made in a foreign country due to changes in the business conditions or adverse effect of macroeconomic factors like government policies or collapse of the current government and significant swing in the exchange rates. The economic risks may include exchange rate fluctuations, a shift in government policy or regulations, political instability, or the introduction of economic sanctions. Financial analysis Print Email. Meaning and definition of economic risk. Generally speaking, economic risk can be described as the likelihood that an investment will be affected by macroeconomic conditions such as government regulation, exchange rates, or political stability, most commonly one in a foreign country.
1 – Unemployment or underemployment. Joblessness is by far the greatest risk factor worldwide, and is named as the top potential cause for economic crisis in 31 countries by the World Economic Forum (WEF).
2 – Cyber-attacks.
3 – Energy price shock.
4 – Failure of national governance.
5 – Fiscal crises.
Economic risk can also be mitigated by investing in insurance, covering the losses arising out of a counterparty defaulting to pay their obligation. Hedging activities against exchange rate fluctuation will prove worthwhile to mitigate the risk.
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4- Marketing
A market is a situation where you, the buyer, and the supplier of a good or service meet and are willing to trade that good or service at an agreed price and quantity.
Market definition
* Traditional: A market is a place where the process of buying and selling (trading) or where buyers and sellers meet to buy and sell products.
* Modern: Marketing is a business battle where entrepreneurs or companies anticipate the needs of society and evaluate their business.
* Market is a group of customers who have the purchasing power and demand that has not been met.
* A market is an employee or entity that needs to be met, has money to spend, and is willing to spend.
Market type
1. Consumer Marketing
2. Industrial market
Target market
There are two strategic options for selecting a target market:
* The first option is to treat the market as a single entity, the whole market or the total market. (Bullet strategy: single program serves a wide range of targets)
* The second option is to select one or more sub-markets to be the target market. (Rifle strategy: specific programs, specific targets)
Cutting market share
Market share deduction is implemented through two activities:
1. Variable settings
2. Classification of variable values by type
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Variable settings
Defining variables is the selection of variables for segmentation, or so-called reference variables, that represent a group of customers with similar needs. These variables include: geography, demographics, mental state, and behavior.
Classification of variable values by type
Market share is determined by the value of each or more of the above reference variables so that market researchers can understand the customer characteristics of each market segment and then devise an appropriate marketing action plan for that market segment. Intended.
Effectiveness of cutting market share
Careful market segmentation can help companies increase their marketing opportunities, such as:
* Market penetration
* Product development
* Market development
* Expansion
Determining the target market position
Targeting a product refers to creating an image of a unique product that outperforms a competitor's product in the minds of customers.
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Steps in the positioning plan
1. Determine a specific market share
2. Decide which segment is your target market
3. Understand what products your target consumers hope and trust
4. Create and supply products that meet those needs and expectations
5. Evaluate the position and attitude of the target customers towards their products compared to competitors.
How to determine the target market position
1. Show product features
2. Show price and quality
3. Demonstrate how to use or apply
4. Tell the product user type
5. Demonstrate advantage
Market activity environment
The market activity environment is an external force that directly or indirectly influences capital inflows or outflows and generates results or outflows.
Micro-market environment
They consider:
1. Competition
2. Customers
3. Intermediary
Macro environment Market activities
1. Demographic environment
2. General economic environment: changes in consumer income, inflation, economic stagnation or recession, economic growth.
3. Government policies and laws
4. Political environment
5. Social and cultural environment
6. Technological environment.
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Marketing strategy is a process that can allow an organization to concentrate its limited resources on the greatest opportunities to increase sales and achieve a sustainable competitive advantage.
The free market : an economic system based on supply and demand with little or no government control. It is a summary description of all voluntary exchanges that take place in a given economic environment.
The marketing environment: refers to all internal and external factors, which directly or indirectly influence the organization's decisions related to marketing activities. Internal factors are within the control of an organization; whereas, external factors do not fall within its control.
The 4 Ps of Marketing: The 4 Ps of marketing include product, price, place, and promotion. These are the key elements that must be united to effectively foster and promote a brand's unique value, and help it stand out from the competition.
The 7 P's of marketing : product, price, promotion, place, people, process, and physical evidence. Moreover, these seven elements comprise the marketing mix. This mix strategically places a business in the market and can be used with varying levels of force.
Equilibrium : the state in which market supply and demand balance each other, and as a result prices become stable. Generally, an over-supply of goods or services causes prices to go down, which results in higher demand—while an under-supply or shortage causes prices to go up resulting in less demand.
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Comparative marketing : a marketing strategy in which a company's product or service is presented as superior when compared to a competitor's.
Comparative advertising is an advertising strategy brands use to advertise their offerings, comparing them with the competitors', and making theirs look better. "Now eat without guilt. Our burger has 80% less calories than McDonald's." This message showcases the brand's offering to be superior. "Still eating junk?
Comparative advertising affects consumer behaviour, decision making and consumerism following the ethical standards of advertising which control the form of competition between products which affects the brand image and the relation between consumers and the products.
Comparative advertising comes with big advantages for brands: it can improve brand awareness and reputation, and it can boost sales or customer growth. Just as important is the potential fallout, such as a decline in reputation or customers.
Comparative advertising has been used effectively by companies like The National Australia Bank (NAB). Its "break up" campaign made a large impact, winning an award from Cannes, and a substantial increase in its consumer interest.
What are the 4 types of Advertising: Display Advertising, Video Advertising, Mobile Advertising, Native Advertising.
Countries with restrictive comparative advertising laws view the use of competitive trademarks as a violation of exclusive use rights. These countries see the practice as a tool for weaker companies to trade on a stronger competitor's reputation.
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Marketing risk : the potential for failures or losses during any marketing activity, from production to promotion. Marketing risks could include any of the following examples: Pricing a product incorrectly. Choosing the wrong channel to advertise to a target audience.
There are many ways to categorize a company's financial risks. One approach for this is provided by separating financial risk into four broad categories: market risk, credit risk, liquidity risk, and operational risk.
7 Strategies for Managing Marketing Risk
Leverage the Right Technologies.
Don't Focus on a Single Silo.
Consider Key Performance Indicators.
Establish a Tolerance Level for Different Types of Marketing Risks.
Use Technology to Track Key Risk Indicators and Tolerance Levels.
Automate Reporting.
Make a Plan of Action.