Revenue, Cost Concepts, and Market Structure Proposal
Running head: Cost Concepts, and Market Structure Proposal 1
Revenue, Cost Concepts, and Market Structure Proposal
Melissa Hillyer
University of Phoenix
Economics 561
Dr. Kocharyan
June 30, 2010
Revenue, Cost Concepts, and Market Structure Proposal 2
Abstract The following paper will analyzes Thomas Money Service scenario data and make recommendations to the company’s increasing revenue. This paper will analyze and determine how to fixed variable cost that should to maximize the profits, achieve ideal productions levels, and identify methods to reduce costs. Recommendations should involve good decision making skills, planning, teaching, coaching, educating, and analyzing the current products and services can determine the future forecast for Thomas Money Service Inc. In order for Thomas Money Service to obtain their profit maximizing output quantity, the organization must start by recognizing that profit is equal to total revenue minus total cost. Recommendations for Thomas Money Service in a falling economy for organization should be decreasing prices until the economy start moving forward in a positive direction. Other recommendations can include collaborating on the economic problems or conditions and researching a solution to accommodate the customers that surrounds the organization. In today’s struggling and uncertain economy organizations can market their products through marketing such as advertising, Internet, word of mouth, newspapers, radio, and television Finally, attached chart represents variable cost, marginal cost, profit, price and other activities within organization of Thomas Money Service.
Revenue, Cost Concepts, and Market Structure Proposal 3
Recommendations for Thomas Money Service Increasing Revenue
Established in 1940 Thomas Money Service Inc is a consumer finance company known for granting small loans for household needs. In addition, the organization expanded their services by issuing business loans, commercial real estate’s
Revenue, Cost Concepts, and Market Structure Proposal
Melissa Hillyer
University of Phoenix
Economics 561
Dr. Kocharyan
June 30, 2010
Revenue, Cost Concepts, and Market Structure Proposal 2
Abstract The following paper will analyzes Thomas Money Service scenario data and make recommendations to the company’s increasing revenue. This paper will analyze and determine how to fixed variable cost that should to maximize the profits, achieve ideal productions levels, and identify methods to reduce costs. Recommendations should involve good decision making skills, planning, teaching, coaching, educating, and analyzing the current products and services can determine the future forecast for Thomas Money Service Inc. In order for Thomas Money Service to obtain their profit maximizing output quantity, the organization must start by recognizing that profit is equal to total revenue minus total cost. Recommendations for Thomas Money Service in a falling economy for organization should be decreasing prices until the economy start moving forward in a positive direction. Other recommendations can include collaborating on the economic problems or conditions and researching a solution to accommodate the customers that surrounds the organization. In today’s struggling and uncertain economy organizations can market their products through marketing such as advertising, Internet, word of mouth, newspapers, radio, and television Finally, attached chart represents variable cost, marginal cost, profit, price and other activities within organization of Thomas Money Service.
Revenue, Cost Concepts, and Market Structure Proposal 3
Recommendations for Thomas Money Service Increasing Revenue
Established in 1940 Thomas Money Service Inc is a consumer finance company known for granting small loans for household needs. In addition, the organization expanded their services by issuing business loans, commercial real estate’s
References: McConnell, C. R. ,Brue, S. L., & Flynn, S.M. (2009). Economics: Principles, problems, and policies (18th ed.). New York: McGraw-Hill Irwin www.investopedia www.ezinearticles.com