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Eco251 Microeconomics

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ECON251: Microeconomics Dr. Audil Rashid Khaki Prepared by: - Sultan Zwayyed - Waleed Alhasan - Ebrahem Alorf - Hussain Alqallaf The Final Project Deliverable The company's changeable inputs are resources or elements of production function whose quantity can be changed or diversified in the short run by the company, while it intends to adjust the quantity of output manufactured. Labor, energy, and materials are the most familiar examples of variable inputs. Variable inputs present the methods used by the company to manage the functional process of short-run production. As a larger quantity of variable inputs, like labor, are joined to fixed inputs, e.g. capital, variable inputs become fixed and less effective resulting in a downfall in …show more content…

Costs are the expenditures that the company bears in creating a particular service or product to the market. The costs express the definite value for unit price purchased in a retailing system. In deciding profitability, the cost value is utilized as a main factor. The market price is the economic value paid for that service or product in the market. The correlation between the price that is paid and the cost that is borne is the profit the company earns when a particular service or product is being sold out. If a buyer pays KWD 200 for a particular service or product that costs the company KWD 100 to sell and fabricate, the company makes a KWD 100 …show more content…

Without doubt, the situation that marginal revenue equals marginal cost is utilized to decide the profit maximizing level of output. As a result, the company will select to produce 70 units of output quantity because the marginal revenue that it obtains from producing 70 units is KWD 200, which is similar to the marginal cost of producing the same quantity of output, KWD 200. If the company aims to maximize profit to KWD 5600, it will incur KWD 8400 as its total cost. If the overall cost is KWD 8400 and the profit is KWD 5600, then the total revenue during a month will be the aggregate of both total costs and profits. Accordingly, the total monthly revenue of the company shall be KWD

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