CRITICAL THINKING 1 - Coursework Example

Critical Thinking Affiliation: Questions for Critical Thinking Salvatore Chapter a. Discussion Questions: 9. The normal returnon investments concept is related to the distinction between business and economic profit because return on investment is a portion of profit in business and cost in the economical view. Economic profit is derived from the difference between profits and the normal return on investments.b. Problems: 6, 15, and spreadsheet problem (p. 39)Problem 6According to the analysis, the project with $100,000 profit promise should be undertaken.

Problem 15 (a)1st year Returns = $.200, 000. Purchase Expenses = $.100, 000. Expenses = $.135, 000. Discount rate = $.30, 000 =15% Loss = $.65, 000.2nd Year Returns = $.200, 000. Expenses = $.135, 000. Discount rate = $.30, 000 =15% Profit = $35, 000. 3rd Year Returns = $.200, 000. Expenses = $.135, 000. Discount rate = $.30, 000 =15% Deduction Loss = $.50, 000. Loss = $.15, 000. Q01234TR08141820AR08765MR8642Question 15 (b) The mean is total time divide by 10 = 92.2/10 = 9.2Question 15 (c)The theory of profit accounting for the profits being earned by the pharmacy in the first 3 years of operation is dynamic theory of profit.

It operates with the assumption of a dynamic society that lacks changes in its business environment.Question 15 (d)Considering the 3 years selling plan, Samantha should still not purchase the pharmacy because it will not be economical in returning her previous investment and operational costs.Salvatore Chapter 3Question 8 (a)Graph 1: Relationship between Quantity, average cost, marginal cost and total costQuestion 8 (b)As observed in graph 1, the total cost increases steadily as the quantity.

The average cost is always above the total cost but below the marginal cost. The marginal cost is also the supply curve of a company. The marginal cost increases and declines at every point relating to the average cost.Froeb et al. Chapter 3:a. Individual problems: 3-1 and 3-3.Indvidual problem 3-1The opportunity cost of seeing Bruce Spingteen is $80 - $0 = $80Indvidual problem 3-3The fallacy made is affirming the consequent since the owners tend to believe they should ask for more because they paid for more.a. Discussion Questions: 9If a marketing manager says he has a marketing program to maximize sales, I would tell him to align his program in a way that marginal revenue is zero.b. Problems: 1(a), 7, and 9.

Problem 1(a) Q0123456TR081418202018AR876543MR7531-1-3Problem 7a. Total, Average and Marginal cost schedulesQ01234TC112141520AC12755MC11215Table 1: Total, Average and Marginal cost schedulesFroeb et al. Chapter 4:a. Individual problems: 4-5 and 4-6.Indvidiual problem 4-5I would lay off workers at the higher tech facility in order to reduce activities and operational costs.Individual problem 4-6I would recommend the company to buy another copier because it has a greater return on investment.