One of the most important microeconomic concepts for a strat

One of the most important microeconomic concepts for a strategic thinker is the use of marginal cost & marginal revenue in decision-making. Locate three to five articles on the web that are germane to this concept, both in what the concept is, but more importantly how the concept should be used strategically. You should then write and post here (\"threaded\" to this posting) a brief research paper of 500-700 words that draws from all these sources. The post should go beyond summarizing the papers to integrate their content. Please use APA format for citations and include the URL link to the source. When you refer to your source, do not give a synopsis of it; we can all read it/them ourselves; you should, however, be sure you cover all or most of the following:

Discuss:

Part I. What conclusion does the author reach about the issue?

Part 2. What are the author\'s reasons for believing as s/he does?

Part 3. Has the author used facts or opinions? (Facts can be proven. Opinions cannot be proven and may or may not be based on sound reasoning.)

Part 4. Has the author used neutral words or emotional words?

Solution

microeconomic concepts for a strategic thinker is the use of marginal cost & marginal revenue in decision-making

the logic says for any product if the cost is too high the customer won\'t buy and if the cost is too low the seller can\'t survive cause if the product is being sell in a idea of gaining something (profit). The only survival way to have the product in market that should sell also and gain percentage should also be present .The concept of marginal cost and marginal revenue. This concept is fully profitable if the seller selling atleast a quantity of similar product. the meaning of marginal is little but when it comes to selling a thousand products the marginal amount with every product will surely increase and the seller will have a healthy profit and the marginal revenue is the additional revenue that will get generated by increasing product sales by one unit. It can also be said as the unit revenue the last item sold has generated for the firm. If a person is doing business the moto is to earn profit.

part1: marginal cost & marginal revenue is the key but for a large quantity of a single product to get sell then only the actual profit can be seen or analysed.

part2: The main aim is attaining profit and that can only be achieved on marginal prices if you are selling a bulk of an item. Real life example the reason why wholesales attain profit and do not go for a loss.

part3: The author has used facts. the concept of marginal cost & marginal revenue was once opinion, people used it and saw the effectiveness of the idea and results but now these became facts. these are also called tact(idea) or bait to get to customers. Eg: if two products of almost same features and one having high price and one having avg price the mentality , people with go with the item wth lesser price the logic says why to waste money and the concept of profit is only when a bulk of any product or item is being sell.

part4: the author has used neutral words cause business require stratergy, patience and logic. without any of these difficult to survive in the marketplace cause new challanges everyday means everyday a new similar product is being launched so how a seller can be competitive in market everyday with earning profit also and selling product also.