ipl-logo

Critical Thinking Essay

407 Words2 Pages

Critical Thinking Questions
26. How does fixed cost affect marginal cost? Why is this relationship important?
A fixed cost is the overhead charge that does not change with the volume of business. (Fixed cost, n.d.). The marginal cost refers to the additional cost that is charged in the production of one more unit of good. (Greenlaw & Taylor, 2017). Fixed cost is constant and does not affect marginal cost in a negative light. If there were no variable cost and it would have only been fixed cost in the production of a good, that would be considered the total cost. The marginal cost is calculated as the change in total cost divided by the change in production of the goods or service. The difference would be zero. Based on this fact, the fixed cost does not affect the marginal cost.
Having fixed cost allows a higher economic profit for the firm. While this question is about the relationship between the fixed and marginal cost, it is the variable cost that would affect the marginal cost; as the term suggest, it changes.
The relationship between the fixed and marginal cost is that since the fixed cost is constant. Therefore, the projected revenue will always be covering the fixed cost. There is no change in the cost and as a result the firm will be able to manage its …show more content…

At startup, they would have incurred a large fixed cost in purchasing the cabs and paying the drivers. The variable cost of gasoline (due to change in the laws of supply and demand) as well as vehicle maintenance. The economic study of these variable costs would have allowed the taxi industry to budget for a significant allocation in the expense for these costs. They would have tested the market for the best prices in relation to variable cost. Finally, when passengers now gain the trust and the company their loyalty, we can see the firm experiencing economies of

Show More
Related
365 Words | 2 Pages

P., Tsay, B., & Olds, P. R. (2011). Fundamental managerial accounting concepts (6th ed.). New York, NY: McGraw-Hill Irwin. WILLSON, T. (2014). Finding Budget Flexibility - or Not: The Impact of Fixed and Variable Cost.

Read More
696 Words | 3 Pages

Chapter 3 of Bazerman’s text focuses on common biases and where they derive from. In past chapters the topic of heuristics was covered. Basically, heuristics are rules of thumb that people use to make quick and efficient decisions. “By providing managers with efficient ways to deal with complex problems, heuristics frequently produce effective decisions.

Read More
1312 Words | 6 Pages

Variable costs are those that vary with the amount of production. For example, at General Motors, variable costs go up with each car produced. If a Transmission costs $7,000, for each car produced by GM variable cost goes up $7,000. If five cars were assembled the variable cost for the engines would be $49,000. Fixed costs do not fluctuate in reference with the quantity of production.

Read More
390 Words | 2 Pages

The three major concepts of chapter 8 were thinking, language, and intelligence. The chapter starts out by defining cognition as mental activities involved in knowledge, including how it is stored and used. Following that, the chapter discusses concepts and how people come to understand concepts. We first start with a prototype, which defines a concept by its most common characteristics, followed by artificial concepts, which involves rules to help when items don’t fit a prototype, and finally a hierarchy to embody and organize everything. The next important part of the beginning of the chapter is problem solving, using algorithms and heuristics.

Read More
308 Words | 2 Pages

Fixed cost is the leverage used to “achieve disproportionate changes in revenue and profitability” (Edmonds, Tsay, & Olds, 2011, p. 56). For instance, when sales change the amount of change in net income is directly influenced by the cost structure. “The

Read More
705 Words | 3 Pages

Profits are never same at all times, there are changes if the product is profitable then the supply is more and the price is also increased so in order to determine the cost of the product the law of demand and supply is used. The supply of a product is increased when the price increases. For example in free market if the customer likes pens instead of pencils then the price of pens increases resulting in decrease in price of pencil so when the producers of supplies see the shift in demand they decide to produce pens instead of pencils because it gives more profits (Ross,

Read More
876 Words | 4 Pages

1. Describe the argument to be addressed in your persuasive essay, include how the argument is derived from your major, the major you are considering pursuing, or your field of work. I. The topic I have chosen is the development of autonomous vehicles. This is a new and arising issues that spawn from my major in Software Engineering.

Read More
1248 Words | 5 Pages

ASSESSMENT 2: Annotated Bibliography Introduction This annotated bibliography has reviewed four journal articles or book chapters, three of which are related to a specific topic, and one related to critical thinking in business (see Reference list for full details of the source). The following paper contains annotations and a critical analysis of the published work.

Read More
658 Words | 3 Pages

Becoming a Critical Thinker through Reading Before I enrolled into this English 102 course, I knew how to write an essay, but my strengths were limited. My first essay was improperly punctuated, had a weak body structure, and fused sentences. Even though I tried my best but sometimes I could not succeed in getting my point across clearly. Based on my weaknesses; one of them being the language barrier because my first language is French therefore, sometime it could be difficult for me to put down proper words in English. I found it quite frustrating when I have a lot of spelling problem and limitation of vocabulary to express my thought or feeling correctly.

Read More
820 Words | 4 Pages

Remember a time in your life when you felt unable to choose among several different solutions to a problem or struggled with making a decision. I hope that this paper will be useful for decision making, problem solving, and critical thinking. The definition of critical thinking is a disciplined thinking that is clear, rational, open-minded, and informed by evidence. Critical thinking frees us from nonsense. Novelist Ernest Hemingway once said that anyone who wants to be a great writer must have a built-in “crap” detector.

Read More
1032 Words | 5 Pages

The complexity of our brains yields very profound thoughts. Although we can influence our thought processes, it is not something we can have complete control over. With this being said, I agree with Arthur Schopenhauer that self-consciousness and the ability to think are the greatest sources of suffering in the world. Whether the suffering we feel is physical or psychological, it is our ability to think that allows this suffering to manifest. Similar to the ability to think, self-consciousness can act as a major detriment to our happiness or pleasure.

Read More
1064 Words | 5 Pages

Figure 2.1: Paul and Elder’s (2001) Framework of Critical Thinking There are two fundamental dimensions of thinking that students need to master in order to learn how to upgrade their thinking. They need to be able to identify the "parts" of their thinking, and they need to be able to assess their use of these parts of thinking (Paul, Elder, & Bartell, 1997). Accordingly, eight elements necessary for any reasoning process were suggested by Paul, Elder, and Bartell (1997): the purpose of the thinking; the question or problem to be solved; information such as data and observations; inferences, interpretations, or solutions; concepts such as theories or definitions; assumptions; implications or consequences; and points of view or frames of reference

Read More
884 Words | 4 Pages

There will be a marginal cost and marginal benefit for each

Read More
1138 Words | 5 Pages

My fall term in English challenged me to find interesting topics to write about, define my arguments and ideas more precisely and to support them with details and evidence. The four essays I wrote allowed me to discover parts of my identity that I had not known about until now. My first essay, the personal narrative, was an open-ended assignment that became the perfect opportunity to give a first impression of who I am as a person to my teacher and peers. I chose to write about squash as it is one of the major areas of my life.

Read More
1033 Words | 5 Pages

Criticism is the inspection and judgment of the merits and demerits of a work. Criticism never seems good and there is nothing pleasant about it. Even the critique having best intentions still stings. All of us like to be right, accomplished and correct and when we are not, it still hurts to hear the truth, no matter how nice others critic tries to be.

Read More

More about Critical Thinking Essay

Related Topics

Open Document