Chapter 13 - Chapter 13 The Costs of Production Things to Know Definitions Total Revenue Equation(Sales Revenue= Price Quantity Total Profit Equation

Chapter 13 - Chapter 13 The Costs of Production Things to...

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Chapter 13 The Costs of Production Things to Know Definitions Total Revenue Equation (Sales) Revenue= Price* Quantity Total Profit Equation Profit = revenue - costs Elements of Opportunity Cost Both implicit and explicit costs Implicit: (already occured) input costs that do not require an outlay of money by the firm Explicit: (direct payment to someone) input costs that require an outlay of money by the firm Types of Implicit Costs - foregone rent - foregone wages - foregone interest Types of plans Plan Who uses it Timeframe Strategic Plan CEO, CFO, CIO, Board of Directors 5-10 years Fluffy, no numbers Tactical Regional Managers, middle management 2-3 years out More numbers Operational Store managers, product managers, product line managers, supervisors Up to and including one year Concreate, lots of numbers Contingency everyone
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  • Fall '16
  • Robi Ragan
  • Economics, total revenue equation

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