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Flashcard 1429150240012

Tags
#sister-miriam-joseph #trivium
Question
The trivium, in itself a tool or a skill, has become associated with its most appropriate subject matter— [...], [...], [...], history, philosophy.
Answer
The languages, oratory, literature


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The trivium, in itself a tool or a skill, has become associated with its most appropriate subject matter—the languages, oratory, literature, history, philosophy.

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Flashcard 1429323255052

Tags
#sister-miriam-joseph #trivium
Question
The applications of the theory of number include not only music theory but also [...], much of [...] , and other forms of scientific measurement of discrete quantities.
Answer
physics

chemistry


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of number include not only music (here understood as musical principles, like those of harmony, which constitute t he liberal art of music and must be distinguished from applied instrumental music, which is a fine art) but also <span>physics, much of chemistry, and other forms of scientific measurement of discrete quantities. The theory of space includes analytic geometry and trigonometry. Applications of the theory of spa

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Flashcard 1432514596108

Tags
#matter-of-language #sister-miriam-joseph #trivium
Question
The voice of irrational animals has meaning [...], from the tone of the utterance.
Answer
from nature


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Voice is the sound uttered by an animal. The voice of irrational animals has meaning from nature, from the tone of the utterance. The human voice alone is symbolic, having a meaning imposed upon it by convention.

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Flashcard 1432993008908

Tags
#13-dic-2016 #mural
Question
Según estimaciones de la Cámara Nacional del Autotransporte de Carga, el precio del diesel subirá entre [...] por ciento para el siguiente año.

Answer
15 y 20


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Según estimaciones de la Cámara Nacional del Autotransporte de Carga, el precio del diesel subirá entre 15 y 20 por ciento para el siguiente año. Este aumento, considera la Cámara, podría ser trasladado al costo del flete, el cual podría subir entre 6 y 8 por ciento, pero eso dependerá

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Encarecerá combustible mercancías
Para 2017 se espera que se encarezcan las mercancías por efecto del gasolinazo. Según estimaciones de la Cámara Nacional del Autotransporte de Carga, el precio del diesel subirá entre 15 y 20 por ciento para el siguiente año. Este aumento, considera la Cámara, podría ser trasladado al costo del flete, el cual podría subir entre 6 y 8 por ciento, pero eso dependerá de las negociaciones que cada transportista logre con sus clientes. Refugio Muñoz, vicepresidente ejecutivo de ese órgano empresarial, explicó que el combustible representa, en promedio, entre 30 y 35 por ciento de los costos operativos de lo







Flashcard 1439595105548

Tags
#aspectos-generales #immex #mexico #modalidades #octopus
Question

3. Programa IMMEX [...], cuando se realicen servicios a mercancías de exportación o se presten servicios de exportación, únicamente para el desarrollo de las actividades que la Secretaría determine, previa opinión de la Secretaría de Hacienda y Crédito Público;

Answer
Servicios


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e una empresa certificada denominada controladora y una o más sociedades controladas; Programa IMMEX Industrial, cuando se realice un proceso industrial de elaboración o transformación de mercancías destinadas a la exportación; Programa IMMEX <span>Servicios, cuando se realicen servicios a mercancías de exportación o se presten servicios de exportación, únicamente para el desarrollo de las actividades que la Secretaría determine, previa opi

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Decreto IMMEX
iladora de Exportación (Maquila) y el que Establece Programas de Importación Temporal para Producir Artículos de Exportación (PITEX), cuyas empresas representan en su conjunto el 85% de las exportaciones manufactureras de México. <span>ASPECTOS GENERALES Definición: El Programa IMMEX es un instrumento mediante el cual se permite importar temporalmente los bienes necesarios para ser utilizados en un proceso industrial o de servicio destinado a la elaboración, transformación o reparación de mercancías de procedencia extranjera importadas temporalmente para su exportación o a la prestación de servicios de exportación, sin cubrir el pago del impuesto general de importación, del impuesto al valor agregado y, en su caso, de las cuotas compensatorias Beneficiarios: La Secretaría de Economía (SE) podrá autorizar a las personas morales residentes en territorio nacional a que se refiere la fracción II del artículo 9 del Código Fiscal de la Federación, que tributen de conformidad con el Título II de la Ley del Impuesto sobre la Renta, un solo Programa IMMEX, que puede incluir las modalidades de controladora de empresas, industrial, servicios, albergue y terciarización, siempre que cumplan con los requisitos previstos en el Decreto para el Fomento de la Industria Manufacturera, Maquiladora y de Servicios de Exportación (Decreto IMMEX), publicado en el Diario Oficial e la Federación el 1 de noviembre de 2006. Beneficios: El Programa IMMEX brinda a sus titulares la posibilidad de importar temporalmente libre de impuestos a la importación y del IVA, los bienes necesarios para ser utilizados en un proceso industrial o de servicio destinado a la elaboración, transformación o reparación de mercancías de procedencia extranjera importadas temporalmente para su exportación o a la prestación de servicios de exportación. Estos bienes están agrupados bajo las siguientes categorías: Materias primas, partes y componentes que se vayan a destinar totalmente a integrar mercancías de exportación; combustibles, lubricantes y otros materiales que se vayan a consumir durante el proceso productivo de la mercancía de exportación; envases y empaques; etiquetas y folletos. Contenedores y cajas de trailers. Maquinaria, equipo, herramientas, instrumentos, moldes y refacciones destinadas al proceso productivo; equipos y aparatos para el control de la contaminación; para la investigación o capacitación, de seguridad industrial, de telecomunicación y cómputo, de laboratorio, de medición, de prueba de productos y control de calidad; así como aquéllos que intervengan en el manejo de materiales relacionados directamente con los bienes de exportación y otros vinculados con el proceso productivo; equipo para el desarrollo administrativo. Modalidades: Programa IMMEX Controladora de empresas, cuando en un mismo programa se integren las operaciones de manufactura de una empresa certificada denominada controladora y una o más sociedades controladas; Programa IMMEX Industrial, cuando se realice un proceso industrial de elaboración o transformación de mercancías destinadas a la exportación; Programa IMMEX Servicios, cuando se realicen servicios a mercancías de exportación o se presten servicios de exportación, únicamente para el desarrollo de las actividades que la Secretaría determine, previa opinión de la Secretaría de Hacienda y Crédito Público; Programa IMMEX Albergue, cuando una o varias empresas extranjeras le faciliten la tecnología y el material productivo, sin que estas últimas operen directamente el Programa, y Programa IMMEX Terciarización, cuando una empresa certificada que no cuente con instalaciones para realizar procesos productivos, realice las operaciones de manufactura a través de terceros que registre en su Programa. La SE podrá aprobar de manera simultánea un Programa de Promoción Sectorial, de acuerdo con el tipo de productos que fabrica o a los servicios de exportación que realice, debiendo cumplir con la normatividad aplicable a los mismos. Tratándose de una empresa bajo la modalidad de servicios, únicamente podrá importar al amparo del Programa de Promoción Sectorial las mercancías a que se refiere el artículo 4, fracción III del presente Decreto, siempre que corresponda al sector en que sea registrada. Vigencia: La vigencia de los Programas IMMEX estará sujeta mientras el titular de los mismos continúe cumpliendo con los requisitos previstos para su otorgamiento y con las obligaciones establecidas en el Decreto. Plazos de permanencia: Los bienes importados temporalmente al amparo de un Programa IMMEX, podrán permanecer en territorio nacional por los plazos establecidos en el artículo 108 de la Ley Aduanera. Para las mercancías comprendidas en los Anexos II y III del Decreto IMMEX, cuando se importen como materia prima, el plazo de permanencia será hasta por doce meses. Tratándose de las mercancías que se encuentran comprendidas en el Anexo III del Decreto IMMEX, cuando se importen como materia prima, únicamente cuando se destinen a actividades bajo la modalidad de servicios, el plazo de permanencia será de hasta seis meses. No podrán ser importadas al amparo del Programa las mercancías señaladas en el Anexo I del Decreto IMMEX. Compromisos: Para gozar de los beneficios de un Programa IMMEX se deberá dar cumplimiento a los términos establecidos en el Decreto en la materia. La autorización del Programa se otorgará bajo el compromiso de realizar anualmente ventas al exterior por un valor superior a 500,000 dólares de los Estados Unidos de América, o su equivalente en moneda nacional, o bien, facturar exportaciones, cuando menos por el 10% de su facturación total. Reportes: El titular de un Programa IMMEX deberá presentar un reporte anual de forma electrónica, respecto del total de las ventas y de las exportaciones, correspondientes al ejercicio fiscal inmediato anterior, a más tardar el último día hábil del mes de mayo, conforme al formato que mediante Reglas y Criterios de Carácter General en Materia de Comercio Exterior dé a conocer la Secretaría de Economía. Adicionalmente, la empresa con Programa IMMEX deberá presentar la información que, para efectos estadísticos, se determine, en los términos que establezca la SE mediante Reglas y Criterios de Carácter General en Materia de Comercio Exterior. Para mayor información sobre este programa comunicarse al 01 800 410 2000 disponible para todo el país ó al buzón de la Secretaría de Economía en www.economia.gob.mx; o al teléfono 52-29-61-00, ext. 34347, Lic. Sergio Manríquez Fernández, Subdirector de Devolución de Impuestos. TRÁMITES Operación: Los trámites relativos al Programa IMMEX son gratuitos y pueden ser realizados en las ventanillas de atención al público de las Repre







Flashcard 1442025704716

Tags
#biochem
Question
The energy due to the van der Waals attraction between two atoms is optimal when they are separated from each other by the [qualitative notion not quantatiive]. If they move closer, the energy increases sharply
Answer
sum of their van der Waals radii


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The van der Waals radius is a measure of the size of an atom. The energy due to the van der Waals attraction between two atoms is optimal when they are separated from each other by the sum of their van der Waals radii. If they move closer, the energy increases sharply

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Flashcard 1446853348620

Tags
#cfa-level-1 #fra-introduction #reading-22-financial-statement-analysis-intro #study-session-7
Question
Financial analysis is the process of examining a company’s performance in the context of [...] in order to arrive at a decision or recommendation.
Answer
its industry and economic environment


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Financial analysis is the process of examining a company’s performance in the context of its industry and economic environment in order to arrive at a decision or recommendation.

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1. INTRODUCTION
Financial analysis is the process of examining a company’s performance in the context of its industry and economic environment in order to arrive at a decision or recommendation. Often, the decisions and recommendations addressed by financial analysts pertain to providing capital to companies—specifically, whether to invest in the company’s debt or equity securi







Flashcard 1446858591500

Tags
#cfa-level-1 #fra-introduction #reading-22-financial-statement-analysis-intro #study-session-7
Question
Basic financial statement analysis provides a foundation that enables the analyst to better understand information gathered [...] beyond the financial reports.
Answer
from research


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Basic financial statement analysis provides a foundation that enables the analyst to better understand information gathered from research beyond the financial reports.

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1. INTRODUCTION
s with the information found in a company’s financial reports. These financial reports include audited financial statements, additional disclosures required by regulatory authorities, and any accompanying (unaudited) commentary by management. <span>Basic financial statement analysis—as presented in this reading—provides a foundation that enables the analyst to better understand information gathered from research beyond the financial reports. This reading is organized as follows: Section 2 discusses the scope of financial statement analysis. Section 3 describes the sources of information used in financial statem







Flashcard 1447262031116

Tags
#sister-miriam-joseph #trivium
Question
An [...] can symbolize the individual or an aggregate.
Answer
empirical description,

such as the present store manager, this computer, the woman who made the flag, the furniture in this house, the microbe now dividing in the petri dish,


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A particular or empirical description, such as the present store manager, this computer, the woman who made the flag, t he furniture in this house, the microbe now dividing in the petri dish, can symbolize the individual or

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Flashcard 1447490882828

Tags
#7-important-definitions #language-and-reality #sister-miriam-joseph #trivium
Question
Essence is that which makes the individual like [...].
Answer
other members of its class


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Essence is that which makes the individual like other members of its class. Quantified matter is that which makes t he individual different from other individuals in its class because matter, extended by reason of its quantity, must be this or that matter, whi

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Flashcard 1447553010956

Tags
#sister-miriam-joseph #trivium
Question
Lawyer and athlete are constructs, for their definition adds to the simple concept human being certain accidents such as knowledge of law or physical agility, which are essential to the definition of lawyer or of athlete although not essential to the definition of a [...]
Answer
construct.


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onstructs, for their definition adds to the simple concept human being certain accidents such as knowledge of law or physical agility, which are essential to the definition of lawyer or of athlete although not essential to the definition of a <span>construct.<span><body><html>

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Flashcard 1447753551116

Tags
#sister-miriam-joseph #trivium
Question
The [...] of language may be compared to the incandescent electrified wire in a transparent bulb; the wire is obvious and its limits are clearly defined. The [...] may be compared to a frosted bulb, in which all the light, it is true, comes from the incandescent wire within, but the light is softened and diffused by the bulb, which gives it a more beautiful and psychologically warmer glow.
Answer
logical dimension

psychological dimension


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The logical dimension of language may be compared to the incandescent electrified wire in a transparent bulb; the wire is obvious and its limits are clearly defined. The psychological dimension may be compared to a frosted bulb, in which all the light, it is true, comes from the incandescent wire within, but the light is softened and diffused by the bulb, which gives it a more

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Flashcard 1447758269708

Tags
#sister-miriam-joseph #trivium
Question
Language with a purely [...] is desirable in legal documents and in scientific and philosophical treatises, where clarity, precision, and singleness of meaning are requisite.
Answer
logical dimension


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Language with a purely logical dimension is desirable in legal document s and in scientific and philosophical treatises, where clarit y, precision, and singleness of meaning are requisite.

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Flashcard 1448261061900



Tags
#cfa-level-1 #economics #has-images #microeconomics #reading-15-demand-and-supply-analysis-the-firm #section-3-analysis-of-revenue-costs-and-profit #study-session-4
Question
This shows the cost curve relationships among ATC, AVC, and AFC in the [...]

The difference between ATC and AVC at any output quantity is exactly equal to the [...]

Answer
short run.

amount of AFC.


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This shows the cost curve relationships among ATC, AVC, and AFC in the short run. The difference between ATC and AVC at any output quantity is exactly equal to the amount of AFC. Both ATC and AVC take on a bowl-shaped pattern in which each curv







Flashcard 1448267615500



Tags
#cfa-level-1 #economics #has-images #microeconomics #reading-15-demand-and-supply-analysis-the-firm #section-3-analysis-of-revenue-costs-and-profit #study-session-4
Question

Mathematically, AVC will be decreasing when [...]. The opposite occurs when [...]
Answer
marginal cost is less than average variable cost,

MC is greater than AVC.

The same relationship holds true for MC and ATC.


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d MC in the short run. The marginal cost curve intersects both the ATC and AVC at their respective minimum points. This occurs at points S and T, which correspond to Q AVC and Q ATC , respectively. Mathematically, when <span>marginal cost is less than average variable cost, AVC will be decreasing . The opposite occurs when MC is greater than AVC. The same relationship holds true for MC and ATC . ATC declines when MC is less than ATC. ATC increases as MC exceeds ATC







Flashcard 1448315587852



Tags
#6-revisiting-demand-function #cfa #cfa-level-1 #economics #has-images #microeconomics #reading-14-demand-and-supply-analysis-consumer-demand #study-session-4
Question
Mental exercise: Part of his response is because of the increase in [...]

We remove that effect subtracting some income, while leaving the new lower price in place.

That budget constraint shows the reduction in income that moves him back to his original indifference curve.

Answer
real income.


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Mental exercise: Part of his response is because of the increase in real income . We remove that effect subtracting some income, while leaving the new lower price in place. That budget constraint shows the reduction in income that moves him back to his original indif

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Substitution effect and income effect
f bread falls, as indicated by the pivoting in budget constraints from BC 1 to BC 2 , Warren buys more bread, increasing his quantity from Q a to Q c . That is the net effect of both the substitution effect and the income effect. <span>Mental exercise: Part of his response is because of the increase in real income . We remove that effect subtracting some income, while leaving the new lower price in place. That budget constraint shows the reduction in income that moves him back to his original indifference curve. Notice that we are moving BC 2 inward, parallel to itself until it becomes just tangent to his original indifference curve at point b. The price decrease was a good thing for him. An offsetting bad thing would be an income reduction. If the income reduction is just sufficient to leave him no better or morse than before the price change, we have removed the real income effect of the decrease in price. What’s left of his response must be due to the substitution effect . So, we say that the substitution effect is shown by the move from point a to point b. If his







Flashcard 1448341802252

Tags
#cfa-level-1 #fra-introduction #reading-22-financial-statement-analysis-intro #study-session-7
Question

2nd part

In evaluating financial reports, analysts typically have a specific economic decision in mind.

Examples of these decisions include the following:

  • [...] to a customer.

  • Examining compliance with debt covenants or other contractual arrangements.

  • Assigning a debt rating to a company or bond issue.

  • Valuing a security for making an investment recommendation to others.

  • Forecasting future net income and cash flow.

Answer
Extending credit


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2nd part In evaluating financial reports, analysts typically have a specific economic decision in mind. Examples of these decisions include the following: Extending credit to a customer. Examining compliance with debt covenants or other contractual arrangements. Assigning a debt rating to a company or bond issue. Valuing a

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2. SCOPE OF FINANCIAL STATEMENT ANALYSIS
ing, and financing decisions but do not necessarily rely on analysis of related financial statements. They have access to additional financial information that can be reported in whatever format is most useful to their decision.) <span>In evaluating financial reports, analysts typically have a specific economic decision in mind. Examples of these decisions include the following: Evaluating an equity investment for inclusion in a portfolio. Evaluating a merger or acquisition candidate. Evaluating a subsidiary or operating division of a parent company. Deciding whether to make a venture capital or other private equity investment. Determining the creditworthiness of a company in order to decide whether to extend a loan to the company and if so, what terms to offer. Extending credit to a customer. Examining compliance with debt covenants or other contractual arrangements. Assigning a debt rating to a company or bond issue. Valuing a security for making an investment recommendation to others. Forecasting future net income and cash flow. These decisions demonstrate certain themes in financial analysis. In general, analysts seek to examine the past and current performance and financial position of a







Flashcard 1448346258700

Tags
#cfa-level-1 #fra-introduction #reading-22-financial-statement-analysis-intro #study-session-7
Question

1st Part

In evaluating financial reports, analysts typically have a specific economic decision in mind.

Examples of these decisions include the following:

  • Determining the [...] in order to decide whether to [...] and if so, what [...]

Answer
creditworthiness of a company

extend a loan to the company

terms to offer.


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merger or acquisition candidate. Evaluating a subsidiary or operating division of a parent company. Deciding whether to make a venture capital or other private equity investment. Determining the <span>creditworthiness of a company in order to decide whether to extend a loan to the company and if so, what terms to offer. <span><body><html>

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2. SCOPE OF FINANCIAL STATEMENT ANALYSIS
ing, and financing decisions but do not necessarily rely on analysis of related financial statements. They have access to additional financial information that can be reported in whatever format is most useful to their decision.) <span>In evaluating financial reports, analysts typically have a specific economic decision in mind. Examples of these decisions include the following: Evaluating an equity investment for inclusion in a portfolio. Evaluating a merger or acquisition candidate. Evaluating a subsidiary or operating division of a parent company. Deciding whether to make a venture capital or other private equity investment. Determining the creditworthiness of a company in order to decide whether to extend a loan to the company and if so, what terms to offer. Extending credit to a customer. Examining compliance with debt covenants or other contractual arrangements. Assigning a debt rating to a company or bond issue. Valuing a security for making an investment recommendation to others. Forecasting future net income and cash flow. These decisions demonstrate certain themes in financial analysis. In general, analysts seek to examine the past and current performance and financial position of a







Flashcard 1448348617996

Tags
#cfa-level-1 #corporate-finance #reading-36-cost-of-capital #study-session-11
Question
This reading is organized as follows:

In Section 2, we introduce the cost of capital and its basic computation.

Section 3 presents a selection of methods for [...]

Section 4 discusses issues an analyst faces in using the cost of capital.
Answer
estimating the costs of the various sources of capital.


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This reading is organized as follows: In Section 2, we introduce the cost of capital and its basic computation. Section 3 presents a selection of methods for estimating the costs of the various sources of capital. Section 4 discusses issues an analyst faces in using the cost of capital.

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1. INTRODUCTION
r, is to estimate the cost of capital for the company as a whole and then adjust this overall corporate cost of capital upward or downward to reflect the risk of the contemplated project relative to the company’s average project. <span>This reading is organized as follows: In the next section, we introduce the cost of capital and its basic computation. Section 3 presents a selection of methods for estimating the costs of the various sources of capital. Section 4 discusses issues an analyst faces in using the cost of capital. A summary concludes the reading. <span><body><html>







Flashcard 1448422018316

Tags
#cfa-level-1 #economics #microeconomics #reading-15-demand-and-supply-analysis-the-firm #section-3-analysis-of-revenue-costs-and-profit #study-session-4
Question
Revenue generation occurs when [...].
Answer
output is sold in the market


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Revenue generation occurs when output is sold in the market. However, costs are incurred before revenue generation takes place as the firm purchases the factors of production, in order to produce a product that will be offered for sale to consum

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3. ANALYSIS OF REVENUE, COSTS, AND PROFITS
ationships among the revenue variables presented in Exhibit 7. Exhibit 8. Total Revenue, Average Revenue, and Marginal Revenue for Exhibit 7 Data <span>3.1.2. Factors of Production Revenue generation occurs when output is sold in the market. However, costs are incurred before revenue generation takes place as the firm purchases resources, or what are commonly known as the factors of production, in order to produce a product or service that will be offered for sale to consumers. Factors of production, the inputs to the production of goods and services, include: land, as in the site location of the business; labor, which consists of the inputs of skilled and unskilled workers as well as the inputs of firms’ managers; capital, which in this context refers to physical capital—such tangible goods as equipment, tools, and buildings. Capital goods are distinguished as inputs to production that are themselves produced goods; and materials, which in this context refers to any goods the business buys as inputs to its production process.1 For example, a business that produces solid wood office desks needs to acquire lumber and hardware accessories as raw materials and hire workers to construct and assemble the desks using power tools and equipment. The factors of production are the inputs to the firm’s process of producing and selling a product or service where the goal of the firm is to maximize profit by satisfying the demand of consumers. The types and quantities of resources or factors used in production, their respective prices, and how efficiently they are employed in the production process determine the cost component of the profit equation. Clearly, in order to produce output, the firm needs to employ factors of production. While firms may use many different types of labor, capital, raw materials, and land, an analyst may find it more convenient to limit attention to a more simplified process in which only the two factors, capital and labor, are employed. The relationship between the flow of output and the two factors of production is called the production function , and it is represented generally as: Equation (5)  Q = f (K, L) where Q is the quantity of output, K is capital, and L is labor. The inputs are subject to the constraint that K ≥ 0 and L ≥ 0. A more general production function is stated as: Equation (6)  Q = f (x 1 , x 2 , … x n ) where x i represents the quantity of the ith input subject to x i ≥ 0 for n number of different inputs. Exhibit 9illustrates the shape of a typical input–output relationship using labor (L) as the only variable input (all other input factors are held constant). The production function has three distinct regions where both the direction of change and the rate of change in total product (TP or Q, quantity of output) vary as production changes. Regions 1 and 2 have positive changes in TP as labor is added, but the change turns negative in Region 3. Moreover, in Region 1 (L 0 – L 1 ), TP is increasing at an increasing rate, typically because specialization allows laborers to become increasingly productive. In Region 2, however, (L 1 – L 2 ), TP is increasing at a decreasing rate because capital is fixed, and labor experiences diminishing marginal returns. The firm would want to avoid Region 3 if at all possible because total product or quantity would be declining rather than increasing with additional input: There is so little capital per unit of labor that additional laborers would possibly “get in each other’s way”. Point A is where TP is maximized. Exhibit 9. A Firm’s Production Function EXAMPLE 3 Factors of Production A group of business investor







Flashcard 1448430931212

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#sister-miriam-joseph #symbols-from-reality #trivium
Question

First the [...] operate on an object present before us and produce a percept.

Then the [...] , primarily the imagination, produce a phantasm or mental image of the individual object perceived,
Answer
external senses

internal senses

This phantasm is retained and can be reproduced at will in the absence of the object.


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First the external senses operate on an object present before us and produce a percept. The internal senses, primarily the imagination, produce a phantasm or mental image of the individual object

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Flashcard 1448434076940

Tags
#sister-miriam-joseph #trivium
Question
Because animals lack the rational powers (intellect, [...], and free will), they are incapable of progress or of culture.
Answer
intellectual memory

Even though they have the external and internal senses, which are sometimes keener than those of humans.


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Irrational animals have the external and internal senses, which are sometimes keener than those of humans. But because they lack the rational powers (intellect, intellectual memory, and free will), they are incapable of progress or of culture.

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Flashcard 1448450854156

Tags
#sister-miriam-joseph #trivium
Question
Lawyer and athlete are constructs, for their definition adds to the simple concept [...] certain accidents such as knowledge of law or physical agility.
Answer
human being


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Lawyer and athlete are constructs, for their definition adds to the simple concept human being certain accidents such as knowledge of law or physical agility, which are essential to the definition of lawyer or of athlete although not essential to the definition of a construct.</s

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Flashcard 1448524516620

Tags
#cfa-level-1 #fra-introduction #reading-22-financial-statement-analysis-intro #study-session-7
Question
An analyst may value shares of a company by comparing its price-to-earnings ratio (P/E) to the P/Es of [...] .
Answer
peer companies


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Earnings are also frequently used by analysts in valuation. For example, an analyst may value shares of a company by comparing its price-to-earnings ratio (P/E) to the P/Es of peer companies and/or may use forecasted future earnings as direct or indirect inputs into discounted cash flow models of valuation.







Flashcard 1448570653964

Tags
#analyst-notes #cfa-level-1 #fra-introduction #reading-22-financial-statement-analysis-intro #study-session-7
Question
Financial statements communicate financial information gathered and processed in the company's accounting system to parties [...]
Answer
outside the business.


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Financial statements communicate financial information gathered and processed in the company's accounting system to parties outside the business.

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Subject 2. Major Financial Statements
Financial statements are the most important outcome of the accounting system. They communicate financial information gathered and processed in the company's accounting system to parties outside the business. The four principal financial statements are: Income statement (statement of earnings) Balance sheet (statement of financial position) Cash flow







Flashcard 1448609189132

Tags
#analyst-notes #cfa-level-1 #fra-introduction #reading-22-financial-statement-analysis-intro #study-session-7
Question
Assets - Liabilities = [...]
Answer
Stockholders' Equity


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Assets - Liabilities = Stockholders' Equity =

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Subject 2. Major Financial Statements
ing operations is deemed not to be persistent, then recurring (pre-tax) income from continuing operations should be adjusted. The net income figure is used to prepare the statement of retained earnings. <span>Balance Sheet A balance sheet provides a "snapshot" of a company's financial condition. Think of the balance sheet as a photo of the business at a specific point in time. It reports major classes and amounts of assets, liabilities, stockholders' equity, and their interrelationships as of a specific date. Assets = Liabilities + Stockholders' Equity Assets are the economic resources controlled by the company. Liabilities are the financial obligations that the company must fulfill in the future. Liabilities are typically fulfilled by payment of cash. They represent the source of financing provided to the company by the creditors. Equity ownership is the owner's investments and the total earnings retained from the commencement of the company. Equity represents the source of financing provided to the company by the owners. Cash Flow Statement The primary purpose of the cash flow statement is to provide information about a company's cash receipts and







Flashcard 1448611548428

Tags
#analyst-notes #cfa-level-1 #fra-introduction #reading-22-financial-statement-analysis-intro #study-session-7
Question
Liabilities = Assets - [...]
Answer
Stockholders' Equity


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Liabilities = Assets - Stockholders' Equity

Original toplevel document

Subject 2. Major Financial Statements
ing operations is deemed not to be persistent, then recurring (pre-tax) income from continuing operations should be adjusted. The net income figure is used to prepare the statement of retained earnings. <span>Balance Sheet A balance sheet provides a "snapshot" of a company's financial condition. Think of the balance sheet as a photo of the business at a specific point in time. It reports major classes and amounts of assets, liabilities, stockholders' equity, and their interrelationships as of a specific date. Assets = Liabilities + Stockholders' Equity Assets are the economic resources controlled by the company. Liabilities are the financial obligations that the company must fulfill in the future. Liabilities are typically fulfilled by payment of cash. They represent the source of financing provided to the company by the creditors. Equity ownership is the owner's investments and the total earnings retained from the commencement of the company. Equity represents the source of financing provided to the company by the owners. Cash Flow Statement The primary purpose of the cash flow statement is to provide information about a company's cash receipts and







Flashcard 1448641432844

Tags
#analyst-notes #cfa-level-1 #fra-introduction #reading-22-financial-statement-analysis-intro #study-session-7
Question
The cashflow statement reports the cash receipts and cash outflows classified according to [...], [...] , and [...] activities
Answer
operating

investment

financing


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The cashflow statement reports the cash receipts and cash outflows classified according to operating, investment, and financing activities

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Subject 2. Major Financial Statements
creditors. Equity ownership is the owner's investments and the total earnings retained from the commencement of the company. Equity represents the source of financing provided to the company by the owners. <span>Cash Flow Statement The primary purpose of the cash flow statement is to provide information about a company's cash receipts and cash payments during a period. It reports the cash receipts and cash outflows classified according to operating, investment, and financing activities. The cash flow statement is useful because it provides answers to the following simple yet important questions: Where did the cash come from during the period? What was the cash used for during the period? What was the change in the cash balance during the period? The statement's value is that it helps users evaluate liquidity, solvency, and financial flexibility. Liquidity refers to the "nearness to cash" of assets and liabilities, or having enough cash available to pay debts when they are due. Solvency refers to the company's ability to pay its debts as they mature. Cash flows reflect the company's liquidity and long-term solvency. Financial flexibility refers to a company's ability to respond and adapt to financial adversity and unexpected needs and opportunities. For example, cash flow information can be used to evaluate the effects of major investment and financing decisions. The details of income statements, balance sheets and cash flow statements will be covered in Study Session 8. Statement of Changes in Owners' Equity This statement reports the amounts and sources of changes in equity from capital transactions with owners.







Flashcard 1448694910220

Tags
#sister-miriam-joseph #trivium
Question
Are concepts arbitrary?
Answer
Hells no son, they have their foundation outside the mind.


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d><head>A general concept is a universal idea existing only in the mind but having its foundation outside the mind in the essence which exist s in the individual and makes it the kind of thing it is. Therefore, a concept is not arbitrary although the word is. Truth has an objective norm in the real.<html>

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#charisma #myth
The next time you’re given a compliment, the following steps will help you skillfully handle the moment: 1. Stop. 2. Absorb the compliment. Enjoy it if you can. 3. Let that second of absorption show on your face. Show the person that they’ve had an impact. 4. Thank them. Saying “Thank you very much” is enough, but you can take it a step further by thanking them for their thoughtfulness or telling them that they’ve made your day

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#charisma #myth
Clinton is known to make everyone he’s speaking to feel as if they were the most important person in the room. How can you make people feel this way? First, think about how you would behave if you were indeed speaking to the most important person in the room.

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#charisma #myth
One great trick is to imagine that the person you’re speaking with is the main star in a movie you’re watching right now. This will help you find them more interesting, and there’s even a chance that you’ll make them feel like a movie star, too.

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#charisma #myth
Don’t try to impress people. Let them impress you, and they will love you for it. Believe it or not, you don’t need to sound smart. You just need to make them feel smart

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#charisma #myth
Whenever you can, choose to speak in pictures. You’ll have a much greater impact, and your message will be far more memorable.

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#charisma #myth
triage: helping those with the best chances of survival and ignoring the rest.

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#charisma #myth
When you tell someone, “No problem,” “Don’t worry,” or “Don’t hesitate to call,” for example, there’s a chance their brain will remember “problem,” “worry,” or “hesitate” instead of your desire to support them. To counter this negative effect, use phrases like “We’ll take care of it” or “Please feel free to call anytime.”

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#charisma #myth
henever people are asked to expend any of their scarce resources, you can bet that they are (at least subconsciously) measuring the return on their investment. You can deliver value to others in multiple ways: Entertainment: Make your e-mail or meeting enjoyable. Information: Give interesting or informative content that they can use. Good feelings: Find ways to make them feel important or good about themselves.

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#charisma #myth
In fact, aiming to deliver high value for low effort brings together all the points we’ve covered in this section. When you speak or write, use few words and lots of pictures, and strive to make your communications useful, enjoyable, and even entertaining

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#charisma #myth
ncreasing voice fluctuation means making your voice vary in any of the following ways: pitch (high or low), volume (loud or quiet), tone (resonant or hollow), tempo (fast or slow), or rhythm (fluid or staccato)

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#charisma #myth
You can gain great insights into your own voice fluctuation by practicing sentences with a tape recorder. Repeat a sentence several times with as wide a variation in emotions as you can. Try to say it with authority, with anger, with sorrow, with empathetic care and concern, with warmth, and with enthusiasm.

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#charisma #myth
If your goal is to communicate power, set the pitch, tone, volume, and tempo of your voice in the following ways: Pitch and tone: The lower, more resonant, and more baritone your voice, the more impact it will have. Volume: One of the first things an actor learns to do on stage is to project his voice, which means gaining the ability to modulate its volume and aim it in such a targeted way that specific portions of the audience can hear it, even from afar. One classic exercise to hone your projection skills is to imagine that your words are arrows. As you speak, aim them at different groups of listeners. Tempo: A slow, measured tempo with frequent pauses conveys confidence.

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#charisma #myth
The guidelines below will help you broadcast power through your voice. 1. Speak slowly. Visualize the contrast between a nervous, squeaky teenager speaking at high speed and the slow, emphatic tone of a judge delivering a verdict. 2. Pause. People who broadcast confidence often pause while speaking. They will pause for a second or two between sentences or even in the middle of a sentence. This conveys the feeling that they’re so confident in their power, they trust that people won’t interrupt. 3. Drop intonation. You know how a voice rises at the end of a question? Just reread the last sentence and hear your voice go up at the end. Now imagine an assertion: a judge saying “This case is closed.” Feel how the intonation of the word closed drops. Lowering the intonation of your voice at the end of a sentence broadcasts power. When you want to sound superconfident, you can even lower your intonation midsentence. 4. Check your breathing. Make sure you’re breathing deeply into your belly and inhale and exhale through your nose rather than your mouth. Breathing through your mouth can make you sound breathless and anxious.

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#charisma #myth
There’s only one thing you need to do in order to project more warmth in your voice: smile.

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#charisma #myth
What about cases in which you don’t necessarily want to smile? The good news is that you don’t need to actually smile: often, just thinking about smiling is enough to give your voice more warmth

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#charisma #myth
here’s an effective visual to simultaneously convey power and warmth. Imagine that you’re a preacher exhorting your congregation. Think of the rich, rolling, resonant voice of a preacher; he cares about his people (warmth), and, in addition, he feels he has the might of God behind him (power, authority, confidence)

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#bayes #programming #r #statistics
The posterior distribution also shows the uncertainty in that estimated slope, because the distribution shows the relative credibility of values across the continuum.

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#bayes #programming #r #statistics
One way to summarize the uncertainty is by marking the span of values that are most credible and cover 95% of the distribution. This is called the highest density inter val (HDI) and is marked by the black bar on the floor of the distribution in Figure 2.5.

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Flashcard 1448738688268



Tags
#cfa-level-1 #economics #has-images #microeconomics #reading-15-demand-and-supply-analysis-the-firm #section-3-analysis-of-revenue-costs-and-profit #study-session-4
Question
Both ATC and AVC take on a bowl-shaped pattern in which each curve initially declines, reaches [...] and then increases.

When output increases, average fixed cost [...]
Answer
a minimum-cost output level,

declines as AFC approaches the horizontal quantity axis.


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This shows the cost curve relationships among ATC, AVC, and AFC in the short run. The difference between ATC and AVC at any output quantity is exactly equal to the amount of AFC. Both ATC and AVC take on a bowl-shaped pattern in which each curv







Flashcard 1448739998988



Tags
#cfa-level-1 #economics #has-images #microeconomics #reading-15-demand-and-supply-analysis-the-firm #section-3-analysis-of-revenue-costs-and-profit #study-session-4
Question
Point S, which corresponds to QAVC, is the [...]

Point T, which corresponds to QATC, is the [...]
Answer
minimum point on the AVC .

minimum point on ATC.


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This shows the cost curve relationships among ATC, AVC, and AFC in the short run. The difference between ATC and AVC at any output quantity is exactly equal to the amount of AFC. Both ATC and AVC take on a bowl-shaped pattern in which each curv







Flashcard 1448744193292



Tags
#cfa-level-1 #economics #has-images #microeconomics #reading-15-demand-and-supply-analysis-the-firm #section-3-analysis-of-revenue-costs-and-profit #study-session-4
Question
This displays the cost curve relationships for [...] in the short run.



Answer
ATC, AVC, and MC


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d MC in the short run. The marginal cost curve intersects both the ATC and AVC at their respective minimum points. This occurs at points S and T, which correspond to Q AVC and Q ATC , respectively. Mathematically, when <span>marginal cost is less than average variable cost, AVC will be decreasing . The opposite occurs when MC is greater than AVC. The same relationship holds true for MC and ATC . ATC declines when MC is less than ATC. ATC increases as MC exceeds ATC







Flashcard 1448746028300



Tags
#cfa-level-1 #economics #has-images #microeconomics #reading-15-demand-and-supply-analysis-the-firm #section-3-analysis-of-revenue-costs-and-profit #study-session-4
Question
The marginal cost curve intersects both the ATC and AVC at [...] .

Answer
their respective minimum points.

This occurs at points S and T, which correspond to QAVC and QATC, respectively.


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d MC in the short run. The marginal cost curve intersects both the ATC and AVC at their respective minimum points. This occurs at points S and T, which correspond to Q AVC and Q ATC , respectively. Mathematically, when <span>marginal cost is less than average variable cost, AVC will be decreasing . The opposite occurs when MC is greater than AVC. The same relationship holds true for MC and ATC . ATC declines when MC is less than ATC. ATC increases as MC exceeds ATC







Flashcard 1448747863308



Tags
#cfa-level-1 #economics #has-images #microeconomics #reading-15-demand-and-supply-analysis-the-firm #section-3-analysis-of-revenue-costs-and-profit #study-session-4
Question
ATC declines when [...] is less than [...].
Answer
MC is less than ATC

ATC
increases as MC exceeds ATC.


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d MC in the short run. The marginal cost curve intersects both the ATC and AVC at their respective minimum points. This occurs at points S and T, which correspond to Q AVC and Q ATC , respectively. Mathematically, when <span>marginal cost is less than average variable cost, AVC will be decreasing . The opposite occurs when MC is greater than AVC. The same relationship holds true for MC and ATC . ATC declines when MC is less than ATC. ATC increases as MC exceeds ATC







Flashcard 1448749698316



Tags
#cfa-level-1 #economics #has-images #microeconomics #reading-15-demand-and-supply-analysis-the-firm #section-3-analysis-of-revenue-costs-and-profit #study-session-4
Question

Initially, the marginal cost curve declines, but at some point it begins to increase in reflection of [...]

Point R, which corresponds to QMC, is the minimum point on the marginal cost curve.
Answer
an increasing rate of change in total costs as the firm produces more output.


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d MC in the short run. The marginal cost curve intersects both the ATC and AVC at their respective minimum points. This occurs at points S and T, which correspond to Q AVC and Q ATC , respectively. Mathematically, when <span>marginal cost is less than average variable cost, AVC will be decreasing . The opposite occurs when MC is greater than AVC. The same relationship holds true for MC and ATC . ATC declines when MC is less than ATC. ATC increases as MC exceeds ATC







#bayes #programming #r #statistics
There is no single, unique way to ascertain whether the model predictions systematically and meaningfully deviate from the data, because there are innumerable ways in which to define systematic deviation.

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#bayes #programming #r #statistics
One situation in which it might appear that parameterized models are not used is with so-called nonparametric models. But these models are confusingly named because they actually do have parameters; in fact they have a potentially infinite number of parameters

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#bayes #programming #r #statistics
One case of trying to make inferences from data without using a model is a method from NHST called resampling or bootstrapping. These methods compute p values to make decisions, and p values have fundamental logical problems that will be discussed in Chapter 11. These methods also have very limited ability to express degrees of certainty about characteristics of the data, whereas Bayesian methods put expression of uncertainty front and center

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Flashcard 1449939045644

Question
Resident in Radiology, Brigham and Women’s Hospita
Answer
[default - edit me]


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This article should help you plan your learning and better understand your lifetime capacity for learning new things. Most of the figures and formulas have been theoretically derived. However, over the last ten years, these theoretical constructs have been confirmed many times by exact measurements taken during an actual learning process

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Theoretical aspects of learning
ised figures (original text included additional figures related to the forgetting rate which has been significantly overestimated due to an error in the implementation of the simulation model) <span>This article should help you plan your learning and better understand your lifetime capacity for learning new things. Most of the figures and formulas have been theoretically derived. However, over the last ten years, these theoretical constructs have been confirmed many times by exact measurements taken during an actual learning process A simple simulation model makes it possible to predict the outcome of a long-term learning process based on spaced repetition. Probability of forgetting at each repetit




Flashcard 1449945337100

Question
A simple simulation model makes it possible to predict the outcome
Answer
[default - edit me]


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Theoretical aspects of learning
ost of the figures and formulas have been theoretically derived. However, over the last ten years, these theoretical constructs have been confirmed many times by exact measurements taken during an actual learning process <span>A simple simulation model makes it possible to predict the outcome of a long-term learning process based on spaced repetition. Probability of forgetting at each repetition is determined by the forgetting index. By using a Spaced Repetition A







Flashcard 1449951890700

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#cfa-level-1 #fra-introduction #reading-22-financial-statement-analysis-intro #study-session-7
Question

1st Part

In evaluating financial reports, analysts typically have a specific economic decision in mind.

Examples of these decisions include the following:

  • Evaluating an [...] for inclusion in [...]

  • Evaluating a merger or acquisition candidate.

Answer
equity investment for inclusion a portfolio.


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merger or acquisition candidate. Evaluating a subsidiary or operating division of a parent company. Deciding whether to make a venture capital or other private equity investment. Determining the <span>creditworthiness of a company in order to decide whether to extend a loan to the company and if so, what terms to offer. <span><body><html>

Original toplevel document

2. SCOPE OF FINANCIAL STATEMENT ANALYSIS
ing, and financing decisions but do not necessarily rely on analysis of related financial statements. They have access to additional financial information that can be reported in whatever format is most useful to their decision.) <span>In evaluating financial reports, analysts typically have a specific economic decision in mind. Examples of these decisions include the following: Evaluating an equity investment for inclusion in a portfolio. Evaluating a merger or acquisition candidate. Evaluating a subsidiary or operating division of a parent company. Deciding whether to make a venture capital or other private equity investment. Determining the creditworthiness of a company in order to decide whether to extend a loan to the company and if so, what terms to offer. Extending credit to a customer. Examining compliance with debt covenants or other contractual arrangements. Assigning a debt rating to a company or bond issue. Valuing a security for making an investment recommendation to others. Forecasting future net income and cash flow. These decisions demonstrate certain themes in financial analysis. In general, analysts seek to examine the past and current performance and financial position of a







Flashcard 1449953725708

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#cfa-level-1 #fra-introduction #reading-22-financial-statement-analysis-intro #study-session-7
Question

In evaluating financial reports, analysts typically have a specific economic decision in mind.

Examples of these decisions include the following:

  • Evaluating a subsidiary or operating division of [...]
  • ​Deciding whether to make a [...] or other private equity investment.
Answer

a parent company.

venture capital


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merger or acquisition candidate. Evaluating a subsidiary or operating division of a parent company. Deciding whether to make a venture capital or other private equity investment. Determining the <span>creditworthiness of a company in order to decide whether to extend a loan to the company and if so, what terms to offer. <span><body><html>

Original toplevel document

2. SCOPE OF FINANCIAL STATEMENT ANALYSIS
ing, and financing decisions but do not necessarily rely on analysis of related financial statements. They have access to additional financial information that can be reported in whatever format is most useful to their decision.) <span>In evaluating financial reports, analysts typically have a specific economic decision in mind. Examples of these decisions include the following: Evaluating an equity investment for inclusion in a portfolio. Evaluating a merger or acquisition candidate. Evaluating a subsidiary or operating division of a parent company. Deciding whether to make a venture capital or other private equity investment. Determining the creditworthiness of a company in order to decide whether to extend a loan to the company and if so, what terms to offer. Extending credit to a customer. Examining compliance with debt covenants or other contractual arrangements. Assigning a debt rating to a company or bond issue. Valuing a security for making an investment recommendation to others. Forecasting future net income and cash flow. These decisions demonstrate certain themes in financial analysis. In general, analysts seek to examine the past and current performance and financial position of a







Flashcard 1449965522188

Tags
#cfa-level-1 #fra-introduction #reading-22-financial-statement-analysis-intro #study-session-7
Question
An analyst may value shares of a company using forecasted future earnings as direct or indirect inputs into [...] of valuation.
Answer
discounted cash flow models


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Earnings are also frequently used by analysts in valuation. For example, an analyst may value shares of a company by comparing its price-to-earnings ratio (P/E) to the P/Es of peer companies and/or may use forecasted future earnings as direct or indirect inputs into discounted cash flow models of valuation.







Flashcard 1449987017996

Tags
#2-1-3-economic-rent #2-1-types-of-profit-measures #cfa-level-1 #economics #microeconomics #reading-15-demand-and-supply-analysis-the-firm #section-2-objectives-of-the-firm #study-session-4
Question
Evidence of economic rent attracts additional [...] to the economic endeavor.
Answer
capital funds


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Evidence of economic rent attracts additional capital funds to the economic endeavor.

Original toplevel document

2. OBJECTIVES OF THE FIRM
er competing firms to compete away any economic profit over the long run. Economic profit that exists over the long run is usually found where competitive conditions persistently are less than perfect in the market. <span>2.1.3. Economic Rent The surplus value known as economic rent results when a particular resource or good is fixed in supply (with a vertical supply curve) and market price is higher than what is required to bring the resource or good onto the market and sustain its use. Essentially, demand determines the price level and the magnitude of economic rent that is forthcoming from the market. Exhibit 1 illustrates this concept, where P 1 is the price level that yields a normal profit return to the business that supplies the item. When demand increases from Demand 1 to Demand 2 , price rises to P 2 , where at this higher price level economic rent is created. The amount of this economic rent is calculated as (P 2 – P 1 ) × Q 1 . The firm has not done anything internally to merit this special reward: It benefits from an increase in demand in conjunction with a supply curve that does not fully adjust with an increase in quantity when price rises. Exhibit 1. Economic Rent Because of their limited availability in nature, certain resources—such as land and specialty commodities—possess highly inelastic supply curves in both the short run and long run (shown in Exhibit 1 as a vertical supply curve). When supply is relatively inelastic, a high degree of market demand can result in pricing that creates economic rent. This economic rent results from the fact that when price increases, the quantity supplied does not change or, at the most, increases only slightly. This is because of the fixation of supply by nature or by such artificial constraints as government policy. How is the concept of economic rent useful in financial analysis? Commodities or resources that command economic rent have the potential to reward equity investors more than what is required to attract their capital to that activity, resulting in greater shareholders’ wealth. Evidence of economic rent attracts additional capital funds to the economic endeavor. This new investment capital increases shareholders’ value as investors bid up share prices of existing firms. Any commodity, resource, or good that is fixed or nearly fixed in supply has the potential to yield economic rent. From an analytical perspective, one can obtain industry supply data to calculate the elasticity of supply , which measures the sensitivity of quantity supplied to a change in price. If quantity supplied is relatively unresponsive ( inelastic ) to price changes, then a potential condition exists in the market for economic rent. A reliable forecast of changes in demand can indicate the degree of any economic rent that is forthcoming from the market in the future. When one is analyzing fixed or nearly fixed supply markets (e.g., gold), a fundamental comprehension of demand determinants is necessary to make rational financial decisions based on potential economic rent. EXAMPLE 1 Economic Rent and Investment Decision Making The following market data show the global demand, global supply, and price on an annual basis for gold over the period 2006–2008. Based on the data, what observation can be made about market demand, supply, and economic rent? Year 2006 2007 2008 Percent Change 2006–2008 Supply (in metric tons) 3,569 3,475 3,508 –1.7 Demand (in metric tons) 3,423 3,552 3,805 +11.2 Average spot price (in US$) 603.92 695.39 871.65 +44.3 Source: GFMS and World Gold Council. Solution: The amount of total gold supplied to the world market over this period has actually declined slightly by 1.7 percent during a period when there was a double-digit increase of 11.2 percent in demand. As a consequence, the spot price has dramatically increased by 44.3 percent. Economic rent has resulted from this market relationship of a relatively fixed supply of gold and a rising demand for it. 2.2. Comparison of Profit Measures All three types of profit are interconnected because, according to Equation 4, acco








Exhibit 14. Total Costs, Total Variable Cost, and Total Fixed Cost for Exhibit 13 Data
#cfa-level-1 #economics #has-images #microeconomics #reading-15-demand-and-supply-analysis-the-firm #section-3-analysis-of-revenue-costs-and-profit #study-session-4
Exhibit 13 shows an example of how total, average, and marginal costs are derived. Total costs are calculated by summing total fixed cost and total variable cost. Marginal cost is derived by taking the change in total costs as the quantity variable changes. Exhibit 14 graphically displays the data for total costs, total variable cost, and total fixed cost from the table in Exhibit 13.

Exhibit 13. Total, Average, Marginal, Fixed, and Variable Costs
Quantity
(Q)
Total Fixed Costa(TFC)Average Fixed Cost (AFC)Total Variable Cost (TVC)Average Variable Cost (AVC)Total Costs (TC)Average Total Cost
(ATC)
Marginal Cost
(MC)
01000100
1100100.05050.0150150.050
210050.07537.517587.525
310033.312541.722575.050
410025.021052.531077.585
510020.030060.040080.090
610016.745075.055091.7150
710014.365092.9750107.1200
810012.5900112.51,000125.0250
910011.11,200133.31,300144.4300
1010010.01,550155.01,650165.0350

a Includes all opportunity costs.


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Article 1450228190476

Costs
#cfa-level-1 #microeconomics #reading-15-demand-and-supply-analysis-the-firm

Total costs (TC) are the summation of all costs, where costs are classified according to fixed or variable. Total costs increase as the firm expands output and decrease when production is cut. The rate of increase in total costs declines up to a certain output level and, thereafter, accelerates as the firm gets closer to full utilization of capacity. The rate of change in total costs mirrors the rate of change in total variable cost. In Exhibit 13, TC at 5 units is 400—of which 300 is variable cost and 100 is fixed cost. At 10 units, total costs are 1,650, which is the sum of 1,550 in variable cost and 100 in fixed cost. Total fixed cost (TFC) is the summation of all expenses that do not change when production varies. It can be a sunk or unavoidable cost that a firm has to cover whether it produces anything or not, or it can be a cost that stays the same over a range of production but can change to another constant level when production moves outside of that range. The latter is referred to as a quasi



#cfa-level-1 #microeconomics #reading-15-demand-and-supply-analysis-the-firm
The rate of increase in total costs declines up to a certain output level and, thereafter, accelerates as the firm gets closer to full utilization of capacity.

The rate of change in total costs mirrors the rate of change in total variable cost.

In Exhibit 13, TC at 5 units is 400—of which 300 is variable cost and 100 is fixed cost. At 10 units, total costs are 1,650, which is the sum of 1,550 in variable cost and 100 in fixed cost.

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Costs
Total costs (TC) are the summation of all costs, where costs are classified according to fixed or variable. Total costs increase as the firm expands output and decrease when production is cut. The rate of increase in total costs declines up to a certain output level and, thereafter, accelerates as the firm gets closer to full utilization of capacity. The rate of change in total costs mirrors the rate of change in total variable cost. In Exhibit 13, TC at 5 units is 400—of which 300 is variable cost and 100 is fixed cost. At 10 units, total costs are 1,650, which is the sum of 1,550 in variable cost and 100 in fixed cost. Total fixed cost (TFC) is the summation of all expenses that do not change when production varies. It can be a sunk or unavoidable cost that a firm has to cover whether it




Flashcard 1450230549772

Tags
#cfa-level-1 #microeconomics #reading-15-demand-and-supply-analysis-the-firm
Question
Total costs (TC) are the summation of all costs, where costs are classified according to [...] or [...] .
Answer
fixed

variable


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Total costs (TC) are the summation of all costs, where costs are classified according to fixed or variable. Total costs increase as the firm expands output and decrease when production is cut. The rate of increase in total costs declines up to a certain output level and, thereaft

Original toplevel document

Costs
Total costs (TC) are the summation of all costs, where costs are classified according to fixed or variable. Total costs increase as the firm expands output and decrease when production is cut. The rate of increase in total costs declines up to a certain output level and, thereafter, accelerates as the firm gets closer to full utilization of capacity. The rate of change in total costs mirrors the rate of change in total variable cost. In Exhibit 13, TC at 5 units is 400—of which 300 is variable cost and 100 is fixed cost. At 10 units, total costs are 1,650, which is the sum of 1,550 in variable cost and 100 in fixed cost. Total fixed cost (TFC) is the summation of all expenses that do not change when production varies. It can be a sunk or unavoidable cost that a firm has to cover whether it







Flashcard 1450232909068

Tags
#cfa-level-1 #microeconomics #reading-15-demand-and-supply-analysis-the-firm
Question
Total costs increase as the firm [...] and decrease when [...].
Answer
expands output

production is cut


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Total costs (TC) are the summation of all costs, where costs are classified according to fixed or variable. Total costs increase as the firm expands output and decrease when production is cut. The rate of increase in total costs declines up to a certain output level and, thereafter, accelerates as the firm gets closer to full utilization o

Original toplevel document

Costs
Total costs (TC) are the summation of all costs, where costs are classified according to fixed or variable. Total costs increase as the firm expands output and decrease when production is cut. The rate of increase in total costs declines up to a certain output level and, thereafter, accelerates as the firm gets closer to full utilization of capacity. The rate of change in total costs mirrors the rate of change in total variable cost. In Exhibit 13, TC at 5 units is 400—of which 300 is variable cost and 100 is fixed cost. At 10 units, total costs are 1,650, which is the sum of 1,550 in variable cost and 100 in fixed cost. Total fixed cost (TFC) is the summation of all expenses that do not change when production varies. It can be a sunk or unavoidable cost that a firm has to cover whether it







Flashcard 1450236841228

Tags
#cfa-level-1 #microeconomics #reading-15-demand-and-supply-analysis-the-firm
Question
The rate of change in total costs mirrors [...]
Answer
the rate of change in total variable cost.


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ead><head> The rate of increase in total costs declines up to a certain output level and, thereafter, accelerates as the firm gets closer to full utilization of capacity. The rate of change in total costs mirrors the rate of change in total variable cost. In Exhibit 13, TC at 5 units is 400—of which 300 is variable cost and 100 is fixed cost. At 10 units, total costs are 1,650, which is the sum of 1,550 in variable cost and 10

Original toplevel document

Costs
Total costs (TC) are the summation of all costs, where costs are classified according to fixed or variable. Total costs increase as the firm expands output and decrease when production is cut. The rate of increase in total costs declines up to a certain output level and, thereafter, accelerates as the firm gets closer to full utilization of capacity. The rate of change in total costs mirrors the rate of change in total variable cost. In Exhibit 13, TC at 5 units is 400—of which 300 is variable cost and 100 is fixed cost. At 10 units, total costs are 1,650, which is the sum of 1,550 in variable cost and 100 in fixed cost. Total fixed cost (TFC) is the summation of all expenses that do not change when production varies. It can be a sunk or unavoidable cost that a firm has to cover whether it







#cfa-level-1 #microeconomics #reading-15-demand-and-supply-analysis-the-firm

Quasi-fixed cost examples would be certain utilities and administrative salaries that could be avoided or be lower when output is zero but would assume higher constant values over different production ranges. Normal profit is considered to be a fixed cost because it is a return required by investors on their equity capital regardless of output level. At zero output, total costs are always equal to the amount of total fixed cost that is incurred at this production point. In Exhibit 13, total fixed cost remains at 100 throughout the entire production range.

Other fixed costs evolve primarily from investments in such fixed assets as real estate, production facilities, and equipment. As a firm grows in size, fixed asset expansion occurs along with a related increase in fixed cost. However, fixed cost cannot be arbitrarily cut when production declines. Regardless of the volume of output, an investment in a given level of fixed assets locks the firm into a certain amount of fixed cost that is used to finance the physical capital base, technology, and other capital assets. When a firm downsizes, the last expense to be cut is usually fixed cost.

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Costs
rate of change in total variable cost. In Exhibit 13, TC at 5 units is 400—of which 300 is variable cost and 100 is fixed cost. At 10 units, total costs are 1,650, which is the sum of 1,550 in variable cost and 100 in fixed cost. <span>Total fixed cost (TFC) is the summation of all expenses that do not change when production varies. It can be a sunk or unavoidable cost that a firm has to cover whether it produces anything or not, or it can be a cost that stays the same over a range of production but can change to another constant level when production moves outside of that range. The latter is referred to as a quasi-fixed cost , although it remains categorized as part of TFC. Examples of fixed costs are debt service, real estate lease agreements, and rental contracts. Quasi-fixed cost examples would be certain utilities and administrative salaries that could be avoided or be lower when output is zero but would assume higher constant values over different production ranges. Normal profit is considered to be a fixed cost because it is a return required by investors on their equity capital regardless of output level. At zero output, total costs are always equal to the amount of total fixed cost that is incurred at this production point. In Exhibit 13, total fixed cost remains at 100 throughout the entire production range. Other fixed costs evolve primarily from investments in such fixed assets as real estate, production facilities, and equipment. As a firm grows in size, fixed asset expansion occurs along with a related increase in fixed cost. However, fixed cost cannot be arbitrarily cut when production declines. Regardless of the volume of output, an investment in a given level of fixed assets locks the firm into a certain amount of fixed cost that is used to finance the physical capital base, technology, and other capital assets. When a firm downsizes, the last expense to be cut is usually fixed cost. Total variable cost (TVC), which is the summation of all variable expenses, has a direct relationship with quantity. When quantity increases, total variable cost increases




Flashcard 1450239462668

Tags
#cfa-level-1 #microeconomics #reading-15-demand-and-supply-analysis-the-firm
Question

Total fixed cost (TFC) is the summation of all expenses that [...].

Answer
do not change when production varies


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Total fixed cost (TFC) is the summation of all expenses that do not change when production varies. It can be a sunk or unavoidable cost that a firm has to cover whether it produces anything or not, or it can be a cost that stays the same over a range of production but can change to

Original toplevel document

Costs
rate of change in total variable cost. In Exhibit 13, TC at 5 units is 400—of which 300 is variable cost and 100 is fixed cost. At 10 units, total costs are 1,650, which is the sum of 1,550 in variable cost and 100 in fixed cost. <span>Total fixed cost (TFC) is the summation of all expenses that do not change when production varies. It can be a sunk or unavoidable cost that a firm has to cover whether it produces anything or not, or it can be a cost that stays the same over a range of production but can change to another constant level when production moves outside of that range. The latter is referred to as a quasi-fixed cost , although it remains categorized as part of TFC. Examples of fixed costs are debt service, real estate lease agreements, and rental contracts. Quasi-fixed cost examples would be certain utilities and administrative salaries that could be avoided or be lower when output is zero but would assume higher constant values over different production ranges. Normal profit is considered to be a fixed cost because it is a return required by investors on their equity capital regardless of output level. At zero output, total costs are always equal to the amount of total fixed cost that is incurred at this production point. In Exhibit 13, total fixed cost remains at 100 throughout the entire production range. Other fixed costs evolve primarily from investments in such fixed assets as real estate, production facilities, and equipment. As a firm grows in size, fixed asset expansion occurs along with a related increase in fixed cost. However, fixed cost cannot be arbitrarily cut when production declines. Regardless of the volume of output, an investment in a given level of fixed assets locks the firm into a certain amount of fixed cost that is used to finance the physical capital base, technology, and other capital assets. When a firm downsizes, the last expense to be cut is usually fixed cost. Total variable cost (TVC), which is the summation of all variable expenses, has a direct relationship with quantity. When quantity increases, total variable cost increases







#cfa-level-1 #microeconomics #reading-15-demand-and-supply-analysis-the-firm
Total fixed cost (TFC) can be a sunk or unavoidable cost that a firm has to cover whether it produces anything or not, or it can be a cost that stays the same over a range of production but can change to another constant level when production moves outside of that range.

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Total fixed cost (TFC) is the summation of all expenses that do not change when production varies. It can be a sunk or unavoidable cost that a firm has to cover whether it produces anything or not, or it can be a cost that stays the same over a range of production but can change to another constant level when production moves outside of that range. The latter is referred to as a quasi-fixed cost , although it remains categorized as part of TFC. Examples of fixed costs are debt service, real estate lease agreements, and rental cont

Original toplevel document

Costs
rate of change in total variable cost. In Exhibit 13, TC at 5 units is 400—of which 300 is variable cost and 100 is fixed cost. At 10 units, total costs are 1,650, which is the sum of 1,550 in variable cost and 100 in fixed cost. <span>Total fixed cost (TFC) is the summation of all expenses that do not change when production varies. It can be a sunk or unavoidable cost that a firm has to cover whether it produces anything or not, or it can be a cost that stays the same over a range of production but can change to another constant level when production moves outside of that range. The latter is referred to as a quasi-fixed cost , although it remains categorized as part of TFC. Examples of fixed costs are debt service, real estate lease agreements, and rental contracts. Quasi-fixed cost examples would be certain utilities and administrative salaries that could be avoided or be lower when output is zero but would assume higher constant values over different production ranges. Normal profit is considered to be a fixed cost because it is a return required by investors on their equity capital regardless of output level. At zero output, total costs are always equal to the amount of total fixed cost that is incurred at this production point. In Exhibit 13, total fixed cost remains at 100 throughout the entire production range. Other fixed costs evolve primarily from investments in such fixed assets as real estate, production facilities, and equipment. As a firm grows in size, fixed asset expansion occurs along with a related increase in fixed cost. However, fixed cost cannot be arbitrarily cut when production declines. Regardless of the volume of output, an investment in a given level of fixed assets locks the firm into a certain amount of fixed cost that is used to finance the physical capital base, technology, and other capital assets. When a firm downsizes, the last expense to be cut is usually fixed cost. Total variable cost (TVC), which is the summation of all variable expenses, has a direct relationship with quantity. When quantity increases, total variable cost increases




Flashcard 1450244181260

Tags
#cfa-level-1 #microeconomics #reading-15-demand-and-supply-analysis-the-firm
Question
Total fixed cost (TFC) can be a sunk or unavoidable cost that a firm has to cover whether [...].
Answer
it produces anything or not.


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Total fixed cost (TFC) can be a sunk or unavoidable cost that a firm has to cover whether it produces anything or not, or it can be a cost that stays the same over a range of production but can change to another constant level when production moves outside of that range.

Original toplevel document

Costs
rate of change in total variable cost. In Exhibit 13, TC at 5 units is 400—of which 300 is variable cost and 100 is fixed cost. At 10 units, total costs are 1,650, which is the sum of 1,550 in variable cost and 100 in fixed cost. <span>Total fixed cost (TFC) is the summation of all expenses that do not change when production varies. It can be a sunk or unavoidable cost that a firm has to cover whether it produces anything or not, or it can be a cost that stays the same over a range of production but can change to another constant level when production moves outside of that range. The latter is referred to as a quasi-fixed cost , although it remains categorized as part of TFC. Examples of fixed costs are debt service, real estate lease agreements, and rental contracts. Quasi-fixed cost examples would be certain utilities and administrative salaries that could be avoided or be lower when output is zero but would assume higher constant values over different production ranges. Normal profit is considered to be a fixed cost because it is a return required by investors on their equity capital regardless of output level. At zero output, total costs are always equal to the amount of total fixed cost that is incurred at this production point. In Exhibit 13, total fixed cost remains at 100 throughout the entire production range. Other fixed costs evolve primarily from investments in such fixed assets as real estate, production facilities, and equipment. As a firm grows in size, fixed asset expansion occurs along with a related increase in fixed cost. However, fixed cost cannot be arbitrarily cut when production declines. Regardless of the volume of output, an investment in a given level of fixed assets locks the firm into a certain amount of fixed cost that is used to finance the physical capital base, technology, and other capital assets. When a firm downsizes, the last expense to be cut is usually fixed cost. Total variable cost (TVC), which is the summation of all variable expenses, has a direct relationship with quantity. When quantity increases, total variable cost increases







#cfa-level-1 #microeconomics #reading-15-demand-and-supply-analysis-the-firm
Total fixed cost (TFC) can be a cost that stays the same over a range of production but can change to another constant level when production moves outside of that range.

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Total fixed cost (TFC) is the summation of all expenses that do not change when production varies. It can be a sunk or unavoidable cost that a firm has to cover whether it produces anything or not, or it can be a cost that stays the same over a range of production but can change to another constant level when production moves outside of that range. The latter is referred to as a quasi-fixed cost , although it remains categorized as part of TFC. Examples of fixed costs are debt service, real estate lease agreements, and rental cont

Original toplevel document

Costs
rate of change in total variable cost. In Exhibit 13, TC at 5 units is 400—of which 300 is variable cost and 100 is fixed cost. At 10 units, total costs are 1,650, which is the sum of 1,550 in variable cost and 100 in fixed cost. <span>Total fixed cost (TFC) is the summation of all expenses that do not change when production varies. It can be a sunk or unavoidable cost that a firm has to cover whether it produces anything or not, or it can be a cost that stays the same over a range of production but can change to another constant level when production moves outside of that range. The latter is referred to as a quasi-fixed cost , although it remains categorized as part of TFC. Examples of fixed costs are debt service, real estate lease agreements, and rental contracts. Quasi-fixed cost examples would be certain utilities and administrative salaries that could be avoided or be lower when output is zero but would assume higher constant values over different production ranges. Normal profit is considered to be a fixed cost because it is a return required by investors on their equity capital regardless of output level. At zero output, total costs are always equal to the amount of total fixed cost that is incurred at this production point. In Exhibit 13, total fixed cost remains at 100 throughout the entire production range. Other fixed costs evolve primarily from investments in such fixed assets as real estate, production facilities, and equipment. As a firm grows in size, fixed asset expansion occurs along with a related increase in fixed cost. However, fixed cost cannot be arbitrarily cut when production declines. Regardless of the volume of output, an investment in a given level of fixed assets locks the firm into a certain amount of fixed cost that is used to finance the physical capital base, technology, and other capital assets. When a firm downsizes, the last expense to be cut is usually fixed cost. Total variable cost (TVC), which is the summation of all variable expenses, has a direct relationship with quantity. When quantity increases, total variable cost increases




Flashcard 1450249424140

Tags
#cfa-level-1 #microeconomics #reading-15-demand-and-supply-analysis-the-firm
Question
Total fixed cost (TFC) can also be a cost that stays the same over a [...] but can change to another constant level when [...].
Answer
range of production

production moves outside of that range


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Total fixed cost (TFC) can be a sunk or unavoidable cost that a firm has to cover whether it produces anything or not, or it can be a cost that stays the same over a range of production but can change to another constant level when production moves outside of that range.

Original toplevel document

Costs
rate of change in total variable cost. In Exhibit 13, TC at 5 units is 400—of which 300 is variable cost and 100 is fixed cost. At 10 units, total costs are 1,650, which is the sum of 1,550 in variable cost and 100 in fixed cost. <span>Total fixed cost (TFC) is the summation of all expenses that do not change when production varies. It can be a sunk or unavoidable cost that a firm has to cover whether it produces anything or not, or it can be a cost that stays the same over a range of production but can change to another constant level when production moves outside of that range. The latter is referred to as a quasi-fixed cost , although it remains categorized as part of TFC. Examples of fixed costs are debt service, real estate lease agreements, and rental contracts. Quasi-fixed cost examples would be certain utilities and administrative salaries that could be avoided or be lower when output is zero but would assume higher constant values over different production ranges. Normal profit is considered to be a fixed cost because it is a return required by investors on their equity capital regardless of output level. At zero output, total costs are always equal to the amount of total fixed cost that is incurred at this production point. In Exhibit 13, total fixed cost remains at 100 throughout the entire production range. Other fixed costs evolve primarily from investments in such fixed assets as real estate, production facilities, and equipment. As a firm grows in size, fixed asset expansion occurs along with a related increase in fixed cost. However, fixed cost cannot be arbitrarily cut when production declines. Regardless of the volume of output, an investment in a given level of fixed assets locks the firm into a certain amount of fixed cost that is used to finance the physical capital base, technology, and other capital assets. When a firm downsizes, the last expense to be cut is usually fixed cost. Total variable cost (TVC), which is the summation of all variable expenses, has a direct relationship with quantity. When quantity increases, total variable cost increases







#cfa-level-1 #microeconomics #reading-15-demand-and-supply-analysis-the-firm
A quasi-fixed cost is a cost that stays the same over a range of production but can change to another constant level when production moves outside of that range.

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The latter is referred to as a quasi-fixed cost , although it remains categorized as part of TFC. Examples of fixed costs are debt service, real estate lease agreements, and rental contracts. Quasi-fixed cost examples would be certai

Original toplevel document

Costs
rate of change in total variable cost. In Exhibit 13, TC at 5 units is 400—of which 300 is variable cost and 100 is fixed cost. At 10 units, total costs are 1,650, which is the sum of 1,550 in variable cost and 100 in fixed cost. <span>Total fixed cost (TFC) is the summation of all expenses that do not change when production varies. It can be a sunk or unavoidable cost that a firm has to cover whether it produces anything or not, or it can be a cost that stays the same over a range of production but can change to another constant level when production moves outside of that range. The latter is referred to as a quasi-fixed cost , although it remains categorized as part of TFC. Examples of fixed costs are debt service, real estate lease agreements, and rental contracts. Quasi-fixed cost examples would be certain utilities and administrative salaries that could be avoided or be lower when output is zero but would assume higher constant values over different production ranges. Normal profit is considered to be a fixed cost because it is a return required by investors on their equity capital regardless of output level. At zero output, total costs are always equal to the amount of total fixed cost that is incurred at this production point. In Exhibit 13, total fixed cost remains at 100 throughout the entire production range. Other fixed costs evolve primarily from investments in such fixed assets as real estate, production facilities, and equipment. As a firm grows in size, fixed asset expansion occurs along with a related increase in fixed cost. However, fixed cost cannot be arbitrarily cut when production declines. Regardless of the volume of output, an investment in a given level of fixed assets locks the firm into a certain amount of fixed cost that is used to finance the physical capital base, technology, and other capital assets. When a firm downsizes, the last expense to be cut is usually fixed cost. Total variable cost (TVC), which is the summation of all variable expenses, has a direct relationship with quantity. When quantity increases, total variable cost increases




Flashcard 1450253880588

Tags
#cfa-level-1 #microeconomics #reading-15-demand-and-supply-analysis-the-firm
Question
A [...] is a cost that stays the same over a range of production but can change to another constant level when production moves outside of that range.


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A quasi-fixed cost is a cost that stays the same over a range of production but can change to another constant level when production moves outside of that range.

Original toplevel document

Costs
rate of change in total variable cost. In Exhibit 13, TC at 5 units is 400—of which 300 is variable cost and 100 is fixed cost. At 10 units, total costs are 1,650, which is the sum of 1,550 in variable cost and 100 in fixed cost. <span>Total fixed cost (TFC) is the summation of all expenses that do not change when production varies. It can be a sunk or unavoidable cost that a firm has to cover whether it produces anything or not, or it can be a cost that stays the same over a range of production but can change to another constant level when production moves outside of that range. The latter is referred to as a quasi-fixed cost , although it remains categorized as part of TFC. Examples of fixed costs are debt service, real estate lease agreements, and rental contracts. Quasi-fixed cost examples would be certain utilities and administrative salaries that could be avoided or be lower when output is zero but would assume higher constant values over different production ranges. Normal profit is considered to be a fixed cost because it is a return required by investors on their equity capital regardless of output level. At zero output, total costs are always equal to the amount of total fixed cost that is incurred at this production point. In Exhibit 13, total fixed cost remains at 100 throughout the entire production range. Other fixed costs evolve primarily from investments in such fixed assets as real estate, production facilities, and equipment. As a firm grows in size, fixed asset expansion occurs along with a related increase in fixed cost. However, fixed cost cannot be arbitrarily cut when production declines. Regardless of the volume of output, an investment in a given level of fixed assets locks the firm into a certain amount of fixed cost that is used to finance the physical capital base, technology, and other capital assets. When a firm downsizes, the last expense to be cut is usually fixed cost. Total variable cost (TVC), which is the summation of all variable expenses, has a direct relationship with quantity. When quantity increases, total variable cost increases







Flashcard 1450255453452

Tags
#cfa-level-1 #microeconomics #reading-15-demand-and-supply-analysis-the-firm
Question
How are Quasi-fixed costs categorized?
Answer
As fixed costs fam


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The latter is referred to as a quasi-fixed cost , although it remains categorized as part of TFC. Examples of fixed costs are debt service, real estate lease agreements, and rental contracts. Quasi-fixed cost examples would be certain utilities and administrative salaries that coul

Original toplevel document

Costs
rate of change in total variable cost. In Exhibit 13, TC at 5 units is 400—of which 300 is variable cost and 100 is fixed cost. At 10 units, total costs are 1,650, which is the sum of 1,550 in variable cost and 100 in fixed cost. <span>Total fixed cost (TFC) is the summation of all expenses that do not change when production varies. It can be a sunk or unavoidable cost that a firm has to cover whether it produces anything or not, or it can be a cost that stays the same over a range of production but can change to another constant level when production moves outside of that range. The latter is referred to as a quasi-fixed cost , although it remains categorized as part of TFC. Examples of fixed costs are debt service, real estate lease agreements, and rental contracts. Quasi-fixed cost examples would be certain utilities and administrative salaries that could be avoided or be lower when output is zero but would assume higher constant values over different production ranges. Normal profit is considered to be a fixed cost because it is a return required by investors on their equity capital regardless of output level. At zero output, total costs are always equal to the amount of total fixed cost that is incurred at this production point. In Exhibit 13, total fixed cost remains at 100 throughout the entire production range. Other fixed costs evolve primarily from investments in such fixed assets as real estate, production facilities, and equipment. As a firm grows in size, fixed asset expansion occurs along with a related increase in fixed cost. However, fixed cost cannot be arbitrarily cut when production declines. Regardless of the volume of output, an investment in a given level of fixed assets locks the firm into a certain amount of fixed cost that is used to finance the physical capital base, technology, and other capital assets. When a firm downsizes, the last expense to be cut is usually fixed cost. Total variable cost (TVC), which is the summation of all variable expenses, has a direct relationship with quantity. When quantity increases, total variable cost increases







Flashcard 1450258599180

Tags
#cfa-level-1 #microeconomics #reading-15-demand-and-supply-analysis-the-firm
Question

Examples of fixed costs are debt service, [...], and rental contracts.

Answer
real estate lease agreements


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Examples of fixed costs are debt service, real estate lease agreements, and rental contracts. Quasi-fixed cost examples would be certain utilities and administrative salaries that could be avoided or be lower when output is zero but would assume higher con

Original toplevel document

Costs
rate of change in total variable cost. In Exhibit 13, TC at 5 units is 400—of which 300 is variable cost and 100 is fixed cost. At 10 units, total costs are 1,650, which is the sum of 1,550 in variable cost and 100 in fixed cost. <span>Total fixed cost (TFC) is the summation of all expenses that do not change when production varies. It can be a sunk or unavoidable cost that a firm has to cover whether it produces anything or not, or it can be a cost that stays the same over a range of production but can change to another constant level when production moves outside of that range. The latter is referred to as a quasi-fixed cost , although it remains categorized as part of TFC. Examples of fixed costs are debt service, real estate lease agreements, and rental contracts. Quasi-fixed cost examples would be certain utilities and administrative salaries that could be avoided or be lower when output is zero but would assume higher constant values over different production ranges. Normal profit is considered to be a fixed cost because it is a return required by investors on their equity capital regardless of output level. At zero output, total costs are always equal to the amount of total fixed cost that is incurred at this production point. In Exhibit 13, total fixed cost remains at 100 throughout the entire production range. Other fixed costs evolve primarily from investments in such fixed assets as real estate, production facilities, and equipment. As a firm grows in size, fixed asset expansion occurs along with a related increase in fixed cost. However, fixed cost cannot be arbitrarily cut when production declines. Regardless of the volume of output, an investment in a given level of fixed assets locks the firm into a certain amount of fixed cost that is used to finance the physical capital base, technology, and other capital assets. When a firm downsizes, the last expense to be cut is usually fixed cost. Total variable cost (TVC), which is the summation of all variable expenses, has a direct relationship with quantity. When quantity increases, total variable cost increases







#cfa-level-1 #microeconomics #reading-15-demand-and-supply-analysis-the-firm
Quasi-fixed cost examples would be certain utilities and administrative salaries that could be avoided or be lower when output is zero but would assume higher constant values over different production ranges. Normal profit is considered to be a fixed cost because it is a return required by investors on their equity capital regardless of output level. At zero output, total costs are always equal to the amount of total fixed cost that is incurred at this production point. In Exhibit 13, total fixed cost remains at 100 throughout the entire production range.

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Open it
Quasi-fixed cost examples would be certain utilities and administrative salaries that could be avoided or be lower when output is zero but would assume higher constant values over different production ranges. Normal profit is considered to be a fixed cost because it is a return required by investors on their equity capital regardless of output level. At zero output, total costs are always equal to the amount of total fixed cost that is incurred at this production point. In Exhibit 13, total fixed cost remains at 100 throughout the entire production range. Other fixed costs evolve primarily from investments in such fixed assets as real estate, production facilities, and equipment. As a firm grows in size, fixed asset expansio

Original toplevel document

Costs
rate of change in total variable cost. In Exhibit 13, TC at 5 units is 400—of which 300 is variable cost and 100 is fixed cost. At 10 units, total costs are 1,650, which is the sum of 1,550 in variable cost and 100 in fixed cost. <span>Total fixed cost (TFC) is the summation of all expenses that do not change when production varies. It can be a sunk or unavoidable cost that a firm has to cover whether it produces anything or not, or it can be a cost that stays the same over a range of production but can change to another constant level when production moves outside of that range. The latter is referred to as a quasi-fixed cost , although it remains categorized as part of TFC. Examples of fixed costs are debt service, real estate lease agreements, and rental contracts. Quasi-fixed cost examples would be certain utilities and administrative salaries that could be avoided or be lower when output is zero but would assume higher constant values over different production ranges. Normal profit is considered to be a fixed cost because it is a return required by investors on their equity capital regardless of output level. At zero output, total costs are always equal to the amount of total fixed cost that is incurred at this production point. In Exhibit 13, total fixed cost remains at 100 throughout the entire production range. Other fixed costs evolve primarily from investments in such fixed assets as real estate, production facilities, and equipment. As a firm grows in size, fixed asset expansion occurs along with a related increase in fixed cost. However, fixed cost cannot be arbitrarily cut when production declines. Regardless of the volume of output, an investment in a given level of fixed assets locks the firm into a certain amount of fixed cost that is used to finance the physical capital base, technology, and other capital assets. When a firm downsizes, the last expense to be cut is usually fixed cost. Total variable cost (TVC), which is the summation of all variable expenses, has a direct relationship with quantity. When quantity increases, total variable cost increases




#cfa-level-1 #microeconomics #reading-15-demand-and-supply-analysis-the-firm
Other fixed costs evolve primarily from investments in such fixed assets as real estate, production facilities, and equipment. As a firm grows in size, fixed asset expansion occurs along with a related increase in fixed cost. However, fixed cost cannot be arbitrarily cut when production declines. Regardless of the volume of output, an investment in a given level of fixed assets locks the firm into a certain amount of fixed cost that is used to finance the physical capital base, technology, and other capital assets. When a firm downsizes, the last expense to be cut is usually fixed cost.

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ess of output level. At zero output, total costs are always equal to the amount of total fixed cost that is incurred at this production point. In Exhibit 13, total fixed cost remains at 100 throughout the entire production range. <span>Other fixed costs evolve primarily from investments in such fixed assets as real estate, production facilities, and equipment. As a firm grows in size, fixed asset expansion occurs along with a related increase in fixed cost. However, fixed cost cannot be arbitrarily cut when production declines. Regardless of the volume of output, an investment in a given level of fixed assets locks the firm into a certain amount of fixed cost that is used to finance the physical capital base, technology, and other capital assets. When a firm downsizes, the last expense to be cut is usually fixed cost. <span><body><html>

Original toplevel document

Costs
rate of change in total variable cost. In Exhibit 13, TC at 5 units is 400—of which 300 is variable cost and 100 is fixed cost. At 10 units, total costs are 1,650, which is the sum of 1,550 in variable cost and 100 in fixed cost. <span>Total fixed cost (TFC) is the summation of all expenses that do not change when production varies. It can be a sunk or unavoidable cost that a firm has to cover whether it produces anything or not, or it can be a cost that stays the same over a range of production but can change to another constant level when production moves outside of that range. The latter is referred to as a quasi-fixed cost , although it remains categorized as part of TFC. Examples of fixed costs are debt service, real estate lease agreements, and rental contracts. Quasi-fixed cost examples would be certain utilities and administrative salaries that could be avoided or be lower when output is zero but would assume higher constant values over different production ranges. Normal profit is considered to be a fixed cost because it is a return required by investors on their equity capital regardless of output level. At zero output, total costs are always equal to the amount of total fixed cost that is incurred at this production point. In Exhibit 13, total fixed cost remains at 100 throughout the entire production range. Other fixed costs evolve primarily from investments in such fixed assets as real estate, production facilities, and equipment. As a firm grows in size, fixed asset expansion occurs along with a related increase in fixed cost. However, fixed cost cannot be arbitrarily cut when production declines. Regardless of the volume of output, an investment in a given level of fixed assets locks the firm into a certain amount of fixed cost that is used to finance the physical capital base, technology, and other capital assets. When a firm downsizes, the last expense to be cut is usually fixed cost. Total variable cost (TVC), which is the summation of all variable expenses, has a direct relationship with quantity. When quantity increases, total variable cost increases




Flashcard 1450263842060

Tags
#cfa-level-1 #microeconomics #reading-15-demand-and-supply-analysis-the-firm
Question
Quasi-fixed cost examples would be certain [...] and [...] that could be avoided or be lower when output is zero but would assume higher constant values over different production ranges.
Answer
utilities

administrative salaries


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Quasi-fixed cost examples would be certain utilities and administrative salaries that could be avoided or be lower when output is zero but would assume higher constant values over different production ranges. Normal profit is considered to be a fixed cost because it

Original toplevel document

Costs
rate of change in total variable cost. In Exhibit 13, TC at 5 units is 400—of which 300 is variable cost and 100 is fixed cost. At 10 units, total costs are 1,650, which is the sum of 1,550 in variable cost and 100 in fixed cost. <span>Total fixed cost (TFC) is the summation of all expenses that do not change when production varies. It can be a sunk or unavoidable cost that a firm has to cover whether it produces anything or not, or it can be a cost that stays the same over a range of production but can change to another constant level when production moves outside of that range. The latter is referred to as a quasi-fixed cost , although it remains categorized as part of TFC. Examples of fixed costs are debt service, real estate lease agreements, and rental contracts. Quasi-fixed cost examples would be certain utilities and administrative salaries that could be avoided or be lower when output is zero but would assume higher constant values over different production ranges. Normal profit is considered to be a fixed cost because it is a return required by investors on their equity capital regardless of output level. At zero output, total costs are always equal to the amount of total fixed cost that is incurred at this production point. In Exhibit 13, total fixed cost remains at 100 throughout the entire production range. Other fixed costs evolve primarily from investments in such fixed assets as real estate, production facilities, and equipment. As a firm grows in size, fixed asset expansion occurs along with a related increase in fixed cost. However, fixed cost cannot be arbitrarily cut when production declines. Regardless of the volume of output, an investment in a given level of fixed assets locks the firm into a certain amount of fixed cost that is used to finance the physical capital base, technology, and other capital assets. When a firm downsizes, the last expense to be cut is usually fixed cost. Total variable cost (TVC), which is the summation of all variable expenses, has a direct relationship with quantity. When quantity increases, total variable cost increases







#cfa-level-1 #microeconomics #reading-15-demand-and-supply-analysis-the-firm
Normal profit is considered to be a fixed cost because it is a return required by investors on their equity capital regardless of output level. At zero output, total costs are always equal to the amount of total fixed cost that is incurred at this production point. In Exhibit 13, total fixed cost remains at 100 throughout the entire production range.

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ml>Quasi-fixed cost examples would be certain utilities and administrative salaries that could be avoided or be lower when output is zero but would assume higher constant values over different production ranges. Normal profit is considered to be a fixed cost because it is a return required by investors on their equity capital regardless of output level. At zero output, total costs are always equal to the amount of total fixed cost that is incurred at this production point. In Exhibit 13, total fixed cost remains at 100 throughout the entire production range.<html>

Original toplevel document

Costs
rate of change in total variable cost. In Exhibit 13, TC at 5 units is 400—of which 300 is variable cost and 100 is fixed cost. At 10 units, total costs are 1,650, which is the sum of 1,550 in variable cost and 100 in fixed cost. <span>Total fixed cost (TFC) is the summation of all expenses that do not change when production varies. It can be a sunk or unavoidable cost that a firm has to cover whether it produces anything or not, or it can be a cost that stays the same over a range of production but can change to another constant level when production moves outside of that range. The latter is referred to as a quasi-fixed cost , although it remains categorized as part of TFC. Examples of fixed costs are debt service, real estate lease agreements, and rental contracts. Quasi-fixed cost examples would be certain utilities and administrative salaries that could be avoided or be lower when output is zero but would assume higher constant values over different production ranges. Normal profit is considered to be a fixed cost because it is a return required by investors on their equity capital regardless of output level. At zero output, total costs are always equal to the amount of total fixed cost that is incurred at this production point. In Exhibit 13, total fixed cost remains at 100 throughout the entire production range. Other fixed costs evolve primarily from investments in such fixed assets as real estate, production facilities, and equipment. As a firm grows in size, fixed asset expansion occurs along with a related increase in fixed cost. However, fixed cost cannot be arbitrarily cut when production declines. Regardless of the volume of output, an investment in a given level of fixed assets locks the firm into a certain amount of fixed cost that is used to finance the physical capital base, technology, and other capital assets. When a firm downsizes, the last expense to be cut is usually fixed cost. Total variable cost (TVC), which is the summation of all variable expenses, has a direct relationship with quantity. When quantity increases, total variable cost increases




Flashcard 1450267249932

Tags
#cfa-level-1 #microeconomics #reading-15-demand-and-supply-analysis-the-firm
Question
Normal profit is considered to be a [...] because it is a return required by investors on their equity capital regardless of output level.
Answer
fixed cost


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Normal profit is considered to be a fixed cost because it is a return required by investors on their equity capital regardless of output level. At zero output, total costs are always equal to the amount of total fixed cost that is i

Original toplevel document

Costs
rate of change in total variable cost. In Exhibit 13, TC at 5 units is 400—of which 300 is variable cost and 100 is fixed cost. At 10 units, total costs are 1,650, which is the sum of 1,550 in variable cost and 100 in fixed cost. <span>Total fixed cost (TFC) is the summation of all expenses that do not change when production varies. It can be a sunk or unavoidable cost that a firm has to cover whether it produces anything or not, or it can be a cost that stays the same over a range of production but can change to another constant level when production moves outside of that range. The latter is referred to as a quasi-fixed cost , although it remains categorized as part of TFC. Examples of fixed costs are debt service, real estate lease agreements, and rental contracts. Quasi-fixed cost examples would be certain utilities and administrative salaries that could be avoided or be lower when output is zero but would assume higher constant values over different production ranges. Normal profit is considered to be a fixed cost because it is a return required by investors on their equity capital regardless of output level. At zero output, total costs are always equal to the amount of total fixed cost that is incurred at this production point. In Exhibit 13, total fixed cost remains at 100 throughout the entire production range. Other fixed costs evolve primarily from investments in such fixed assets as real estate, production facilities, and equipment. As a firm grows in size, fixed asset expansion occurs along with a related increase in fixed cost. However, fixed cost cannot be arbitrarily cut when production declines. Regardless of the volume of output, an investment in a given level of fixed assets locks the firm into a certain amount of fixed cost that is used to finance the physical capital base, technology, and other capital assets. When a firm downsizes, the last expense to be cut is usually fixed cost. Total variable cost (TVC), which is the summation of all variable expenses, has a direct relationship with quantity. When quantity increases, total variable cost increases







Flashcard 1450269609228

Tags
#cfa-level-1 #microeconomics #reading-15-demand-and-supply-analysis-the-firm
Question
At zero output, total costs are always equal to the amount of [...] that is incurred at this production point.
Answer
total fixed cost


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Normal profit is considered to be a fixed cost because it is a return required by investors on their equity capital regardless of output level. At zero output, total costs are always equal to the amount of total fixed cost that is incurred at this production point. In Exhibit 13, total fixed cost remains at 100 throughout the entire production range.

Original toplevel document

Costs
rate of change in total variable cost. In Exhibit 13, TC at 5 units is 400—of which 300 is variable cost and 100 is fixed cost. At 10 units, total costs are 1,650, which is the sum of 1,550 in variable cost and 100 in fixed cost. <span>Total fixed cost (TFC) is the summation of all expenses that do not change when production varies. It can be a sunk or unavoidable cost that a firm has to cover whether it produces anything or not, or it can be a cost that stays the same over a range of production but can change to another constant level when production moves outside of that range. The latter is referred to as a quasi-fixed cost , although it remains categorized as part of TFC. Examples of fixed costs are debt service, real estate lease agreements, and rental contracts. Quasi-fixed cost examples would be certain utilities and administrative salaries that could be avoided or be lower when output is zero but would assume higher constant values over different production ranges. Normal profit is considered to be a fixed cost because it is a return required by investors on their equity capital regardless of output level. At zero output, total costs are always equal to the amount of total fixed cost that is incurred at this production point. In Exhibit 13, total fixed cost remains at 100 throughout the entire production range. Other fixed costs evolve primarily from investments in such fixed assets as real estate, production facilities, and equipment. As a firm grows in size, fixed asset expansion occurs along with a related increase in fixed cost. However, fixed cost cannot be arbitrarily cut when production declines. Regardless of the volume of output, an investment in a given level of fixed assets locks the firm into a certain amount of fixed cost that is used to finance the physical capital base, technology, and other capital assets. When a firm downsizes, the last expense to be cut is usually fixed cost. Total variable cost (TVC), which is the summation of all variable expenses, has a direct relationship with quantity. When quantity increases, total variable cost increases







Flashcard 1450271968524

Tags
#cfa-level-1 #microeconomics #reading-15-demand-and-supply-analysis-the-firm
Question
Other fixed costs evolve primarily from investments in such fixed assets as real estate, [...], and equipment.
Answer
production facilities


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Other fixed costs evolve primarily from investments in such fixed assets as real estate, production facilities, and equipment. As a firm grows in size, fixed asset expansion occurs along with a related increase in fixed cost. However, fixed cost cannot be arbitrarily cut when production declines

Original toplevel document

Costs
rate of change in total variable cost. In Exhibit 13, TC at 5 units is 400—of which 300 is variable cost and 100 is fixed cost. At 10 units, total costs are 1,650, which is the sum of 1,550 in variable cost and 100 in fixed cost. <span>Total fixed cost (TFC) is the summation of all expenses that do not change when production varies. It can be a sunk or unavoidable cost that a firm has to cover whether it produces anything or not, or it can be a cost that stays the same over a range of production but can change to another constant level when production moves outside of that range. The latter is referred to as a quasi-fixed cost , although it remains categorized as part of TFC. Examples of fixed costs are debt service, real estate lease agreements, and rental contracts. Quasi-fixed cost examples would be certain utilities and administrative salaries that could be avoided or be lower when output is zero but would assume higher constant values over different production ranges. Normal profit is considered to be a fixed cost because it is a return required by investors on their equity capital regardless of output level. At zero output, total costs are always equal to the amount of total fixed cost that is incurred at this production point. In Exhibit 13, total fixed cost remains at 100 throughout the entire production range. Other fixed costs evolve primarily from investments in such fixed assets as real estate, production facilities, and equipment. As a firm grows in size, fixed asset expansion occurs along with a related increase in fixed cost. However, fixed cost cannot be arbitrarily cut when production declines. Regardless of the volume of output, an investment in a given level of fixed assets locks the firm into a certain amount of fixed cost that is used to finance the physical capital base, technology, and other capital assets. When a firm downsizes, the last expense to be cut is usually fixed cost. Total variable cost (TVC), which is the summation of all variable expenses, has a direct relationship with quantity. When quantity increases, total variable cost increases







Flashcard 1450274327820

Tags
#cfa-level-1 #microeconomics #reading-15-demand-and-supply-analysis-the-firm
Question
As a firm grows in size, [...] occurs along with a related increase in fixed cost.
Answer
fixed asset expansion


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Other fixed costs evolve primarily from investments in such fixed assets as real estate, production facilities, and equipment. As a firm grows in size, fixed asset expansion occurs along with a related increase in fixed cost. However, fixed cost cannot be arbitrarily cut when production declines. Regardless of the volume of output, an investment in a given

Original toplevel document

Costs
rate of change in total variable cost. In Exhibit 13, TC at 5 units is 400—of which 300 is variable cost and 100 is fixed cost. At 10 units, total costs are 1,650, which is the sum of 1,550 in variable cost and 100 in fixed cost. <span>Total fixed cost (TFC) is the summation of all expenses that do not change when production varies. It can be a sunk or unavoidable cost that a firm has to cover whether it produces anything or not, or it can be a cost that stays the same over a range of production but can change to another constant level when production moves outside of that range. The latter is referred to as a quasi-fixed cost , although it remains categorized as part of TFC. Examples of fixed costs are debt service, real estate lease agreements, and rental contracts. Quasi-fixed cost examples would be certain utilities and administrative salaries that could be avoided or be lower when output is zero but would assume higher constant values over different production ranges. Normal profit is considered to be a fixed cost because it is a return required by investors on their equity capital regardless of output level. At zero output, total costs are always equal to the amount of total fixed cost that is incurred at this production point. In Exhibit 13, total fixed cost remains at 100 throughout the entire production range. Other fixed costs evolve primarily from investments in such fixed assets as real estate, production facilities, and equipment. As a firm grows in size, fixed asset expansion occurs along with a related increase in fixed cost. However, fixed cost cannot be arbitrarily cut when production declines. Regardless of the volume of output, an investment in a given level of fixed assets locks the firm into a certain amount of fixed cost that is used to finance the physical capital base, technology, and other capital assets. When a firm downsizes, the last expense to be cut is usually fixed cost. Total variable cost (TVC), which is the summation of all variable expenses, has a direct relationship with quantity. When quantity increases, total variable cost increases







Flashcard 1450276687116

Tags
#cfa-level-1 #microeconomics #reading-15-demand-and-supply-analysis-the-firm
Question
[...] cannot be cut down when production declines.
Answer
Fixed cost


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osts evolve primarily from investments in such fixed assets as real estate, production facilities, and equipment. As a firm grows in size, fixed asset expansion occurs along with a related increase in fixed cost. However, fixed cost cannot be <span>arbitrarily cut when production declines. Regardless of the volume of output, an investment in a given level of fixed assets locks the firm into a certain amount of fixed cost that is used to finance t

Original toplevel document

Costs
rate of change in total variable cost. In Exhibit 13, TC at 5 units is 400—of which 300 is variable cost and 100 is fixed cost. At 10 units, total costs are 1,650, which is the sum of 1,550 in variable cost and 100 in fixed cost. <span>Total fixed cost (TFC) is the summation of all expenses that do not change when production varies. It can be a sunk or unavoidable cost that a firm has to cover whether it produces anything or not, or it can be a cost that stays the same over a range of production but can change to another constant level when production moves outside of that range. The latter is referred to as a quasi-fixed cost , although it remains categorized as part of TFC. Examples of fixed costs are debt service, real estate lease agreements, and rental contracts. Quasi-fixed cost examples would be certain utilities and administrative salaries that could be avoided or be lower when output is zero but would assume higher constant values over different production ranges. Normal profit is considered to be a fixed cost because it is a return required by investors on their equity capital regardless of output level. At zero output, total costs are always equal to the amount of total fixed cost that is incurred at this production point. In Exhibit 13, total fixed cost remains at 100 throughout the entire production range. Other fixed costs evolve primarily from investments in such fixed assets as real estate, production facilities, and equipment. As a firm grows in size, fixed asset expansion occurs along with a related increase in fixed cost. However, fixed cost cannot be arbitrarily cut when production declines. Regardless of the volume of output, an investment in a given level of fixed assets locks the firm into a certain amount of fixed cost that is used to finance the physical capital base, technology, and other capital assets. When a firm downsizes, the last expense to be cut is usually fixed cost. Total variable cost (TVC), which is the summation of all variable expenses, has a direct relationship with quantity. When quantity increases, total variable cost increases







#cfa-level-1 #microeconomics #reading-15-demand-and-supply-analysis-the-firm
Regardless of the volume of output, an investment in a given level of fixed assets locks the firm into a certain amount of fixed cost that is used to finance the physical capital base, technology, and other capital assets. When a firm downsizes, the last expense to be cut is usually fixed cost.

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such fixed assets as real estate, production facilities, and equipment. As a firm grows in size, fixed asset expansion occurs along with a related increase in fixed cost. However, fixed cost cannot be arbitrarily cut when production declines. <span>Regardless of the volume of output, an investment in a given level of fixed assets locks the firm into a certain amount of fixed cost that is used to finance the physical capital base, technology, and other capital assets. When a firm downsizes, the last expense to be cut is usually fixed cost.<span><body><html>

Original toplevel document

Costs
rate of change in total variable cost. In Exhibit 13, TC at 5 units is 400—of which 300 is variable cost and 100 is fixed cost. At 10 units, total costs are 1,650, which is the sum of 1,550 in variable cost and 100 in fixed cost. <span>Total fixed cost (TFC) is the summation of all expenses that do not change when production varies. It can be a sunk or unavoidable cost that a firm has to cover whether it produces anything or not, or it can be a cost that stays the same over a range of production but can change to another constant level when production moves outside of that range. The latter is referred to as a quasi-fixed cost , although it remains categorized as part of TFC. Examples of fixed costs are debt service, real estate lease agreements, and rental contracts. Quasi-fixed cost examples would be certain utilities and administrative salaries that could be avoided or be lower when output is zero but would assume higher constant values over different production ranges. Normal profit is considered to be a fixed cost because it is a return required by investors on their equity capital regardless of output level. At zero output, total costs are always equal to the amount of total fixed cost that is incurred at this production point. In Exhibit 13, total fixed cost remains at 100 throughout the entire production range. Other fixed costs evolve primarily from investments in such fixed assets as real estate, production facilities, and equipment. As a firm grows in size, fixed asset expansion occurs along with a related increase in fixed cost. However, fixed cost cannot be arbitrarily cut when production declines. Regardless of the volume of output, an investment in a given level of fixed assets locks the firm into a certain amount of fixed cost that is used to finance the physical capital base, technology, and other capital assets. When a firm downsizes, the last expense to be cut is usually fixed cost. Total variable cost (TVC), which is the summation of all variable expenses, has a direct relationship with quantity. When quantity increases, total variable cost increases




#cfa-level-1 #microeconomics #reading-15-demand-and-supply-analysis-the-firm
Regardless of the volume of output, an investment in a given level of fixed assets locks the firm into a certain amount of fixed cost that is used to finance the physical capital base, technology, and other capital assets.

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Regardless of the volume of output, an investment in a given level of fixed assets locks the firm into a certain amount of fixed cost that is used to finance the physical capital base, technology, and other capital assets. When a firm downsizes, the last expense to be cut is usually fixed cost.

Original toplevel document

Costs
rate of change in total variable cost. In Exhibit 13, TC at 5 units is 400—of which 300 is variable cost and 100 is fixed cost. At 10 units, total costs are 1,650, which is the sum of 1,550 in variable cost and 100 in fixed cost. <span>Total fixed cost (TFC) is the summation of all expenses that do not change when production varies. It can be a sunk or unavoidable cost that a firm has to cover whether it produces anything or not, or it can be a cost that stays the same over a range of production but can change to another constant level when production moves outside of that range. The latter is referred to as a quasi-fixed cost , although it remains categorized as part of TFC. Examples of fixed costs are debt service, real estate lease agreements, and rental contracts. Quasi-fixed cost examples would be certain utilities and administrative salaries that could be avoided or be lower when output is zero but would assume higher constant values over different production ranges. Normal profit is considered to be a fixed cost because it is a return required by investors on their equity capital regardless of output level. At zero output, total costs are always equal to the amount of total fixed cost that is incurred at this production point. In Exhibit 13, total fixed cost remains at 100 throughout the entire production range. Other fixed costs evolve primarily from investments in such fixed assets as real estate, production facilities, and equipment. As a firm grows in size, fixed asset expansion occurs along with a related increase in fixed cost. However, fixed cost cannot be arbitrarily cut when production declines. Regardless of the volume of output, an investment in a given level of fixed assets locks the firm into a certain amount of fixed cost that is used to finance the physical capital base, technology, and other capital assets. When a firm downsizes, the last expense to be cut is usually fixed cost. Total variable cost (TVC), which is the summation of all variable expenses, has a direct relationship with quantity. When quantity increases, total variable cost increases




#cfa-level-1 #microeconomics #reading-15-demand-and-supply-analysis-the-firm
When a firm downsizes, the last expense to be cut is usually fixed cost.

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d>Regardless of the volume of output, an investment in a given level of fixed assets locks the firm into a certain amount of fixed cost that is used to finance the physical capital base, technology, and other capital assets. When a firm downsizes, the last expense to be cut is usually fixed cost.<html>

Original toplevel document

Costs
rate of change in total variable cost. In Exhibit 13, TC at 5 units is 400—of which 300 is variable cost and 100 is fixed cost. At 10 units, total costs are 1,650, which is the sum of 1,550 in variable cost and 100 in fixed cost. <span>Total fixed cost (TFC) is the summation of all expenses that do not change when production varies. It can be a sunk or unavoidable cost that a firm has to cover whether it produces anything or not, or it can be a cost that stays the same over a range of production but can change to another constant level when production moves outside of that range. The latter is referred to as a quasi-fixed cost , although it remains categorized as part of TFC. Examples of fixed costs are debt service, real estate lease agreements, and rental contracts. Quasi-fixed cost examples would be certain utilities and administrative salaries that could be avoided or be lower when output is zero but would assume higher constant values over different production ranges. Normal profit is considered to be a fixed cost because it is a return required by investors on their equity capital regardless of output level. At zero output, total costs are always equal to the amount of total fixed cost that is incurred at this production point. In Exhibit 13, total fixed cost remains at 100 throughout the entire production range. Other fixed costs evolve primarily from investments in such fixed assets as real estate, production facilities, and equipment. As a firm grows in size, fixed asset expansion occurs along with a related increase in fixed cost. However, fixed cost cannot be arbitrarily cut when production declines. Regardless of the volume of output, an investment in a given level of fixed assets locks the firm into a certain amount of fixed cost that is used to finance the physical capital base, technology, and other capital assets. When a firm downsizes, the last expense to be cut is usually fixed cost. Total variable cost (TVC), which is the summation of all variable expenses, has a direct relationship with quantity. When quantity increases, total variable cost increases




#cfa-level-1 #microeconomics #reading-15-demand-and-supply-analysis-the-firm

Total variable cost (TVC), which is the summation of all variable expenses, has a direct relationship with quantity. When quantity increases, total variable cost increases; total variable cost declines when quantity decreases. At zero production, total variable cost is always zero. Variable cost examples are payments for labor, raw materials, and supplies. As indicated above, total costs mirror total variable cost, with the difference being a constant fixed cost. The change in total variable cost (which defines marginal cost) declines up to a certain output point and then increases as production approaches capacity limits. In Exhibit 13, total variable cost increases with an increase in quantity. However, the change from 1 to 2 units is 25, calculated as (75 – 50); the change from 9 to 10 units is 350, calculated as (1,550 – 1,200).

Another approach to calculating total variable cost is to determine the variable cost per unit of output and multiply this cost figure by the number of production units. Per unit variable cost is the cost of producing each unit exclusive of any fixed cost allocation to production units. One can assign variable cost individually to units or derive an average variable cost per unit.

Whenever a firm initiates a downsizing, retrenchment, or defensive strategy, variable cost is the first to be considered for reduction given its variability with output. However, variable cost is reducible only so far because all firms have to maintain a minimum amount of labor and other variable resources to function effectively.

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Costs
of fixed assets locks the firm into a certain amount of fixed cost that is used to finance the physical capital base, technology, and other capital assets. When a firm downsizes, the last expense to be cut is usually fixed cost. <span>Total variable cost (TVC), which is the summation of all variable expenses, has a direct relationship with quantity. When quantity increases, total variable cost increases; total variable cost declines when quantity decreases. At zero production, total variable cost is always zero. Variable cost examples are payments for labor, raw materials, and supplies. As indicated above, total costs mirror total variable cost, with the difference being a constant fixed cost. The change in total variable cost (which defines marginal cost) declines up to a certain output point and then increases as production approaches capacity limits. In Exhibit 13, total variable cost increases with an increase in quantity. However, the change from 1 to 2 units is 25, calculated as (75 – 50); the change from 9 to 10 units is 350, calculated as (1,550 – 1,200). Another approach to calculating total variable cost is to determine the variable cost per unit of output and multiply this cost figure by the number of production units. Per unit variable cost is the cost of producing each unit exclusive of any fixed cost allocation to production units. One can assign variable cost individually to units or derive an average variable cost per unit. Whenever a firm initiates a downsizing, retrenchment, or defensive strategy, variable cost is the first to be considered for reduction given its variability with output. However, variable cost is reducible only so far because all firms have to maintain a minimum amount of labor and other variable resources to function effectively. <span><body><html>




#cfa-level-1 #microeconomics #reading-15-demand-and-supply-analysis-the-firm
Total variable cost (TVC), which is the summation of all variable expenses, has a direct relationship with quantity. When quantity increases, total variable cost increases; total variable cost declines when quantity decreases. At zero production, total variable cost is always zero. Variable cost examples are payments for labor, raw materials, and supplies. As indicated above, total costs mirror total variable cost, with the difference being a constant fixed cost. The change in total variable cost (which defines marginal cost) declines up to a certain output point and then increases as production approaches capacity limits. In Exhibit 13, total variable cost increases with an increase in quantity. However, the change from 1 to 2 units is 25, calculated as (75 – 50); the change from 9 to 10 units is 350, calculated as (1,550 – 1,200).

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Total variable cost (TVC), which is the summation of all variable expenses, has a direct relationship with quantity. When quantity increases, total variable cost increases; total variable cost declines when quantity decreases. At zero production, total variable cost is always zero. Variable cost examples are payments for labor, raw materials, and supplies. As indicated above, total costs mirror total variable cost, with the difference being a constant fixed cost. The change in total variable cost (which defines marginal cost) declines up to a certain output point and then increases as production approaches capacity limits. In Exhibit 13, total variable cost increases with an increase in quantity. However, the change from 1 to 2 units is 25, calculated as (75 – 50); the change from 9 to 10 units is 350, calculated as (1,550 – 1,200). Another approach to calculating total variable cost is to determine the variable cost per unit of output and multiply this cost figure by the number of production units. Pe

Original toplevel document

Costs
of fixed assets locks the firm into a certain amount of fixed cost that is used to finance the physical capital base, technology, and other capital assets. When a firm downsizes, the last expense to be cut is usually fixed cost. <span>Total variable cost (TVC), which is the summation of all variable expenses, has a direct relationship with quantity. When quantity increases, total variable cost increases; total variable cost declines when quantity decreases. At zero production, total variable cost is always zero. Variable cost examples are payments for labor, raw materials, and supplies. As indicated above, total costs mirror total variable cost, with the difference being a constant fixed cost. The change in total variable cost (which defines marginal cost) declines up to a certain output point and then increases as production approaches capacity limits. In Exhibit 13, total variable cost increases with an increase in quantity. However, the change from 1 to 2 units is 25, calculated as (75 – 50); the change from 9 to 10 units is 350, calculated as (1,550 – 1,200). Another approach to calculating total variable cost is to determine the variable cost per unit of output and multiply this cost figure by the number of production units. Per unit variable cost is the cost of producing each unit exclusive of any fixed cost allocation to production units. One can assign variable cost individually to units or derive an average variable cost per unit. Whenever a firm initiates a downsizing, retrenchment, or defensive strategy, variable cost is the first to be considered for reduction given its variability with output. However, variable cost is reducible only so far because all firms have to maintain a minimum amount of labor and other variable resources to function effectively. <span><body><html>




#cfa-level-1 #microeconomics #reading-15-demand-and-supply-analysis-the-firm
Total variable cost (TVC), which is the summation of all variable expenses, has a direct relationship with quantity.

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Parent (intermediate) annotation

Open it
Total variable cost (TVC), which is the summation of all variable expenses, has a direct relationship with quantity. When quantity increases, total variable cost increases; total variable cost declines when quantity decreases. At zero production, total variable cost is always zero. Variable cost examp

Original toplevel document

Costs
of fixed assets locks the firm into a certain amount of fixed cost that is used to finance the physical capital base, technology, and other capital assets. When a firm downsizes, the last expense to be cut is usually fixed cost. <span>Total variable cost (TVC), which is the summation of all variable expenses, has a direct relationship with quantity. When quantity increases, total variable cost increases; total variable cost declines when quantity decreases. At zero production, total variable cost is always zero. Variable cost examples are payments for labor, raw materials, and supplies. As indicated above, total costs mirror total variable cost, with the difference being a constant fixed cost. The change in total variable cost (which defines marginal cost) declines up to a certain output point and then increases as production approaches capacity limits. In Exhibit 13, total variable cost increases with an increase in quantity. However, the change from 1 to 2 units is 25, calculated as (75 – 50); the change from 9 to 10 units is 350, calculated as (1,550 – 1,200). Another approach to calculating total variable cost is to determine the variable cost per unit of output and multiply this cost figure by the number of production units. Per unit variable cost is the cost of producing each unit exclusive of any fixed cost allocation to production units. One can assign variable cost individually to units or derive an average variable cost per unit. Whenever a firm initiates a downsizing, retrenchment, or defensive strategy, variable cost is the first to be considered for reduction given its variability with output. However, variable cost is reducible only so far because all firms have to maintain a minimum amount of labor and other variable resources to function effectively. <span><body><html>




Flashcard 1450291629324

Tags
#cfa-level-1 #microeconomics #reading-15-demand-and-supply-analysis-the-firm
Question
Total variable cost (TVC), which is the summation of all variable expenses, has a direct relationship with [...].
Answer
quantity


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Parent (intermediate) annotation

Open it
Total variable cost (TVC), which is the summation of all variable expenses, has a direct relationship with quantity.

Original toplevel document

Costs
of fixed assets locks the firm into a certain amount of fixed cost that is used to finance the physical capital base, technology, and other capital assets. When a firm downsizes, the last expense to be cut is usually fixed cost. <span>Total variable cost (TVC), which is the summation of all variable expenses, has a direct relationship with quantity. When quantity increases, total variable cost increases; total variable cost declines when quantity decreases. At zero production, total variable cost is always zero. Variable cost examples are payments for labor, raw materials, and supplies. As indicated above, total costs mirror total variable cost, with the difference being a constant fixed cost. The change in total variable cost (which defines marginal cost) declines up to a certain output point and then increases as production approaches capacity limits. In Exhibit 13, total variable cost increases with an increase in quantity. However, the change from 1 to 2 units is 25, calculated as (75 – 50); the change from 9 to 10 units is 350, calculated as (1,550 – 1,200). Another approach to calculating total variable cost is to determine the variable cost per unit of output and multiply this cost figure by the number of production units. Per unit variable cost is the cost of producing each unit exclusive of any fixed cost allocation to production units. One can assign variable cost individually to units or derive an average variable cost per unit. Whenever a firm initiates a downsizing, retrenchment, or defensive strategy, variable cost is the first to be considered for reduction given its variability with output. However, variable cost is reducible only so far because all firms have to maintain a minimum amount of labor and other variable resources to function effectively. <span><body><html>







#cfa-level-1 #microeconomics #reading-15-demand-and-supply-analysis-the-firm
When quantity increases, total variable cost increases; total variable cost declines when quantity decreases.

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Total variable cost (TVC), which is the summation of all variable expenses, has a direct relationship with quantity. When quantity increases, total variable cost increases; total variable cost declines when quantity decreases. At zero production, total variable cost is always zero. Variable cost examples are payments for labor, raw materials, and supplies. As indicated above, total costs mirror total variable

Original toplevel document

Costs
of fixed assets locks the firm into a certain amount of fixed cost that is used to finance the physical capital base, technology, and other capital assets. When a firm downsizes, the last expense to be cut is usually fixed cost. <span>Total variable cost (TVC), which is the summation of all variable expenses, has a direct relationship with quantity. When quantity increases, total variable cost increases; total variable cost declines when quantity decreases. At zero production, total variable cost is always zero. Variable cost examples are payments for labor, raw materials, and supplies. As indicated above, total costs mirror total variable cost, with the difference being a constant fixed cost. The change in total variable cost (which defines marginal cost) declines up to a certain output point and then increases as production approaches capacity limits. In Exhibit 13, total variable cost increases with an increase in quantity. However, the change from 1 to 2 units is 25, calculated as (75 – 50); the change from 9 to 10 units is 350, calculated as (1,550 – 1,200). Another approach to calculating total variable cost is to determine the variable cost per unit of output and multiply this cost figure by the number of production units. Per unit variable cost is the cost of producing each unit exclusive of any fixed cost allocation to production units. One can assign variable cost individually to units or derive an average variable cost per unit. Whenever a firm initiates a downsizing, retrenchment, or defensive strategy, variable cost is the first to be considered for reduction given its variability with output. However, variable cost is reducible only so far because all firms have to maintain a minimum amount of labor and other variable resources to function effectively. <span><body><html>




Flashcard 1450294775052

Tags
#cfa-level-1 #microeconomics #reading-15-demand-and-supply-analysis-the-firm
Question
At zero production, total variable cost is [...]
Answer
always zero.


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ody>Total variable cost (TVC), which is the summation of all variable expenses, has a direct relationship with quantity. When quantity increases, total variable cost increases; total variable cost declines when quantity decreases. At zero production, total variable cost is always zero. Variable cost examples are payments for labor, raw materials, and supplies. As indicated above, total costs mirror total variable cost, with the difference being a constant fixed cost.

Original toplevel document

Costs
of fixed assets locks the firm into a certain amount of fixed cost that is used to finance the physical capital base, technology, and other capital assets. When a firm downsizes, the last expense to be cut is usually fixed cost. <span>Total variable cost (TVC), which is the summation of all variable expenses, has a direct relationship with quantity. When quantity increases, total variable cost increases; total variable cost declines when quantity decreases. At zero production, total variable cost is always zero. Variable cost examples are payments for labor, raw materials, and supplies. As indicated above, total costs mirror total variable cost, with the difference being a constant fixed cost. The change in total variable cost (which defines marginal cost) declines up to a certain output point and then increases as production approaches capacity limits. In Exhibit 13, total variable cost increases with an increase in quantity. However, the change from 1 to 2 units is 25, calculated as (75 – 50); the change from 9 to 10 units is 350, calculated as (1,550 – 1,200). Another approach to calculating total variable cost is to determine the variable cost per unit of output and multiply this cost figure by the number of production units. Per unit variable cost is the cost of producing each unit exclusive of any fixed cost allocation to production units. One can assign variable cost individually to units or derive an average variable cost per unit. Whenever a firm initiates a downsizing, retrenchment, or defensive strategy, variable cost is the first to be considered for reduction given its variability with output. However, variable cost is reducible only so far because all firms have to maintain a minimum amount of labor and other variable resources to function effectively. <span><body><html>







#cfa-level-1 #microeconomics #reading-15-demand-and-supply-analysis-the-firm
Variable cost examples are payments for labor, raw materials, and supplies.

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summation of all variable expenses, has a direct relationship with quantity. When quantity increases, total variable cost increases; total variable cost declines when quantity decreases. At zero production, total variable cost is always zero. <span>Variable cost examples are payments for labor, raw materials, and supplies. As indicated above, total costs mirror total variable cost, with the difference being a constant fixed cost. The change in total variable cost (which defines marginal cost) declines up

Original toplevel document

Costs
of fixed assets locks the firm into a certain amount of fixed cost that is used to finance the physical capital base, technology, and other capital assets. When a firm downsizes, the last expense to be cut is usually fixed cost. <span>Total variable cost (TVC), which is the summation of all variable expenses, has a direct relationship with quantity. When quantity increases, total variable cost increases; total variable cost declines when quantity decreases. At zero production, total variable cost is always zero. Variable cost examples are payments for labor, raw materials, and supplies. As indicated above, total costs mirror total variable cost, with the difference being a constant fixed cost. The change in total variable cost (which defines marginal cost) declines up to a certain output point and then increases as production approaches capacity limits. In Exhibit 13, total variable cost increases with an increase in quantity. However, the change from 1 to 2 units is 25, calculated as (75 – 50); the change from 9 to 10 units is 350, calculated as (1,550 – 1,200). Another approach to calculating total variable cost is to determine the variable cost per unit of output and multiply this cost figure by the number of production units. Per unit variable cost is the cost of producing each unit exclusive of any fixed cost allocation to production units. One can assign variable cost individually to units or derive an average variable cost per unit. Whenever a firm initiates a downsizing, retrenchment, or defensive strategy, variable cost is the first to be considered for reduction given its variability with output. However, variable cost is reducible only so far because all firms have to maintain a minimum amount of labor and other variable resources to function effectively. <span><body><html>




Flashcard 1450298182924

Tags
#cfa-level-1 #microeconomics #reading-15-demand-and-supply-analysis-the-firm
Question
Variable cost examples are payments for [...], [...], and supplies.
Answer
labor

raw materials


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Parent (intermediate) annotation

Open it
Variable cost examples are payments for labor, raw materials, and supplies.

Original toplevel document

Costs
of fixed assets locks the firm into a certain amount of fixed cost that is used to finance the physical capital base, technology, and other capital assets. When a firm downsizes, the last expense to be cut is usually fixed cost. <span>Total variable cost (TVC), which is the summation of all variable expenses, has a direct relationship with quantity. When quantity increases, total variable cost increases; total variable cost declines when quantity decreases. At zero production, total variable cost is always zero. Variable cost examples are payments for labor, raw materials, and supplies. As indicated above, total costs mirror total variable cost, with the difference being a constant fixed cost. The change in total variable cost (which defines marginal cost) declines up to a certain output point and then increases as production approaches capacity limits. In Exhibit 13, total variable cost increases with an increase in quantity. However, the change from 1 to 2 units is 25, calculated as (75 – 50); the change from 9 to 10 units is 350, calculated as (1,550 – 1,200). Another approach to calculating total variable cost is to determine the variable cost per unit of output and multiply this cost figure by the number of production units. Per unit variable cost is the cost of producing each unit exclusive of any fixed cost allocation to production units. One can assign variable cost individually to units or derive an average variable cost per unit. Whenever a firm initiates a downsizing, retrenchment, or defensive strategy, variable cost is the first to be considered for reduction given its variability with output. However, variable cost is reducible only so far because all firms have to maintain a minimum amount of labor and other variable resources to function effectively. <span><body><html>







#cfa-level-1 #microeconomics #reading-15-demand-and-supply-analysis-the-firm
Total costs mirror total variable cost, with the difference being a constant fixed cost.

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Parent (intermediate) annotation

Open it
When quantity increases, total variable cost increases; total variable cost declines when quantity decreases. At zero production, total variable cost is always zero. Variable cost examples are payments for labor, raw materials, and supplies. <span>As indicated above, total costs mirror total variable cost, with the difference being a constant fixed cost. The change in total variable cost (which defines marginal cost) declines up to a certain output point and then increases as production approaches capacity limits. In Exhibit 13, total v

Original toplevel document

Costs
of fixed assets locks the firm into a certain amount of fixed cost that is used to finance the physical capital base, technology, and other capital assets. When a firm downsizes, the last expense to be cut is usually fixed cost. <span>Total variable cost (TVC), which is the summation of all variable expenses, has a direct relationship with quantity. When quantity increases, total variable cost increases; total variable cost declines when quantity decreases. At zero production, total variable cost is always zero. Variable cost examples are payments for labor, raw materials, and supplies. As indicated above, total costs mirror total variable cost, with the difference being a constant fixed cost. The change in total variable cost (which defines marginal cost) declines up to a certain output point and then increases as production approaches capacity limits. In Exhibit 13, total variable cost increases with an increase in quantity. However, the change from 1 to 2 units is 25, calculated as (75 – 50); the change from 9 to 10 units is 350, calculated as (1,550 – 1,200). Another approach to calculating total variable cost is to determine the variable cost per unit of output and multiply this cost figure by the number of production units. Per unit variable cost is the cost of producing each unit exclusive of any fixed cost allocation to production units. One can assign variable cost individually to units or derive an average variable cost per unit. Whenever a firm initiates a downsizing, retrenchment, or defensive strategy, variable cost is the first to be considered for reduction given its variability with output. However, variable cost is reducible only so far because all firms have to maintain a minimum amount of labor and other variable resources to function effectively. <span><body><html>




Flashcard 1450302377228

Tags
#cfa-level-1 #microeconomics #reading-15-demand-and-supply-analysis-the-firm
Question
Total costs mirror total variable cost, with the difference being a [...].
Answer
constant fixed cost


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Total costs mirror total variable cost , with the difference being a constant fixed cost.

Original toplevel document

Costs
of fixed assets locks the firm into a certain amount of fixed cost that is used to finance the physical capital base, technology, and other capital assets. When a firm downsizes, the last expense to be cut is usually fixed cost. <span>Total variable cost (TVC), which is the summation of all variable expenses, has a direct relationship with quantity. When quantity increases, total variable cost increases; total variable cost declines when quantity decreases. At zero production, total variable cost is always zero. Variable cost examples are payments for labor, raw materials, and supplies. As indicated above, total costs mirror total variable cost, with the difference being a constant fixed cost. The change in total variable cost (which defines marginal cost) declines up to a certain output point and then increases as production approaches capacity limits. In Exhibit 13, total variable cost increases with an increase in quantity. However, the change from 1 to 2 units is 25, calculated as (75 – 50); the change from 9 to 10 units is 350, calculated as (1,550 – 1,200). Another approach to calculating total variable cost is to determine the variable cost per unit of output and multiply this cost figure by the number of production units. Per unit variable cost is the cost of producing each unit exclusive of any fixed cost allocation to production units. One can assign variable cost individually to units or derive an average variable cost per unit. Whenever a firm initiates a downsizing, retrenchment, or defensive strategy, variable cost is the first to be considered for reduction given its variability with output. However, variable cost is reducible only so far because all firms have to maintain a minimum amount of labor and other variable resources to function effectively. <span><body><html>







#cfa-level-1 #microeconomics #reading-15-demand-and-supply-analysis-the-firm
The change in total variable cost (which defines marginal cost) declines up to a certain output point and then increases as production approaches capacity limits.

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. At zero production, total variable cost is always zero. Variable cost examples are payments for labor, raw materials, and supplies. As indicated above, total costs mirror total variable cost, with the difference being a constant fixed cost. <span>The change in total variable cost (which defines marginal cost) declines up to a certain output point and then increases as production approaches capacity limits. In Exhibit 13, total variable cost increases with an increase in quantity. However, the change from 1 to 2 units is 25, calculated as (75 – 50); the change from 9 to 10 units is 350, ca

Original toplevel document

Costs
of fixed assets locks the firm into a certain amount of fixed cost that is used to finance the physical capital base, technology, and other capital assets. When a firm downsizes, the last expense to be cut is usually fixed cost. <span>Total variable cost (TVC), which is the summation of all variable expenses, has a direct relationship with quantity. When quantity increases, total variable cost increases; total variable cost declines when quantity decreases. At zero production, total variable cost is always zero. Variable cost examples are payments for labor, raw materials, and supplies. As indicated above, total costs mirror total variable cost, with the difference being a constant fixed cost. The change in total variable cost (which defines marginal cost) declines up to a certain output point and then increases as production approaches capacity limits. In Exhibit 13, total variable cost increases with an increase in quantity. However, the change from 1 to 2 units is 25, calculated as (75 – 50); the change from 9 to 10 units is 350, calculated as (1,550 – 1,200). Another approach to calculating total variable cost is to determine the variable cost per unit of output and multiply this cost figure by the number of production units. Per unit variable cost is the cost of producing each unit exclusive of any fixed cost allocation to production units. One can assign variable cost individually to units or derive an average variable cost per unit. Whenever a firm initiates a downsizing, retrenchment, or defensive strategy, variable cost is the first to be considered for reduction given its variability with output. However, variable cost is reducible only so far because all firms have to maintain a minimum amount of labor and other variable resources to function effectively. <span><body><html>




Flashcard 1450304998668

Tags
#cfa-level-1 #microeconomics #reading-15-demand-and-supply-analysis-the-firm
Question
The change in total variable cost (which defines [...]) declines up to a certain output point and then increases as production approaches capacity limits.
Answer
marginal cost


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The change in total variable cost (which defines marginal cost) declines up to a certain output point and then increases as production approaches capacity limits.

Original toplevel document

Costs
of fixed assets locks the firm into a certain amount of fixed cost that is used to finance the physical capital base, technology, and other capital assets. When a firm downsizes, the last expense to be cut is usually fixed cost. <span>Total variable cost (TVC), which is the summation of all variable expenses, has a direct relationship with quantity. When quantity increases, total variable cost increases; total variable cost declines when quantity decreases. At zero production, total variable cost is always zero. Variable cost examples are payments for labor, raw materials, and supplies. As indicated above, total costs mirror total variable cost, with the difference being a constant fixed cost. The change in total variable cost (which defines marginal cost) declines up to a certain output point and then increases as production approaches capacity limits. In Exhibit 13, total variable cost increases with an increase in quantity. However, the change from 1 to 2 units is 25, calculated as (75 – 50); the change from 9 to 10 units is 350, calculated as (1,550 – 1,200). Another approach to calculating total variable cost is to determine the variable cost per unit of output and multiply this cost figure by the number of production units. Per unit variable cost is the cost of producing each unit exclusive of any fixed cost allocation to production units. One can assign variable cost individually to units or derive an average variable cost per unit. Whenever a firm initiates a downsizing, retrenchment, or defensive strategy, variable cost is the first to be considered for reduction given its variability with output. However, variable cost is reducible only so far because all firms have to maintain a minimum amount of labor and other variable resources to function effectively. <span><body><html>







#cfa-level-1 #microeconomics #reading-15-demand-and-supply-analysis-the-firm
Another approach to calculating total variable cost is to determine the variable cost per unit of output and multiply this cost figure by the number of production units. Per unit variable cost is the cost of producing each unit exclusive of any fixed cost allocation to production units. One can assign variable cost individually to units or derive an average variable cost per unit.

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apacity limits. In Exhibit 13, total variable cost increases with an increase in quantity. However, the change from 1 to 2 units is 25, calculated as (75 – 50); the change from 9 to 10 units is 350, calculated as (1,550 – 1,200). <span>Another approach to calculating total variable cost is to determine the variable cost per unit of output and multiply this cost figure by the number of production units. Per unit variable cost is the cost of producing each unit exclusive of any fixed cost allocation to production units. One can assign variable cost individually to units or derive an average variable cost per unit. Whenever a firm initiates a downsizing, retrenchment, or defensive strategy, variable cost is the first to be considered for reduction given its variability with output. Ho

Original toplevel document

Costs
of fixed assets locks the firm into a certain amount of fixed cost that is used to finance the physical capital base, technology, and other capital assets. When a firm downsizes, the last expense to be cut is usually fixed cost. <span>Total variable cost (TVC), which is the summation of all variable expenses, has a direct relationship with quantity. When quantity increases, total variable cost increases; total variable cost declines when quantity decreases. At zero production, total variable cost is always zero. Variable cost examples are payments for labor, raw materials, and supplies. As indicated above, total costs mirror total variable cost, with the difference being a constant fixed cost. The change in total variable cost (which defines marginal cost) declines up to a certain output point and then increases as production approaches capacity limits. In Exhibit 13, total variable cost increases with an increase in quantity. However, the change from 1 to 2 units is 25, calculated as (75 – 50); the change from 9 to 10 units is 350, calculated as (1,550 – 1,200). Another approach to calculating total variable cost is to determine the variable cost per unit of output and multiply this cost figure by the number of production units. Per unit variable cost is the cost of producing each unit exclusive of any fixed cost allocation to production units. One can assign variable cost individually to units or derive an average variable cost per unit. Whenever a firm initiates a downsizing, retrenchment, or defensive strategy, variable cost is the first to be considered for reduction given its variability with output. However, variable cost is reducible only so far because all firms have to maintain a minimum amount of labor and other variable resources to function effectively. <span><body><html>




Flashcard 1450307620108

Tags
#cfa-level-1 #microeconomics #reading-15-demand-and-supply-analysis-the-firm
Question
Another approach to calculating total variable cost is to determine the variable cost [...] and multiply this cost figure by the number of production units.
Answer
per unit of output


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Another approach to calculating total variable cost is to determine the variable cost per unit of output and multiply this cost figure by the number of production units. Per unit variable cost is the cost of producing each unit exclusive of any fixed cost allocation to production units. On

Original toplevel document

Costs
of fixed assets locks the firm into a certain amount of fixed cost that is used to finance the physical capital base, technology, and other capital assets. When a firm downsizes, the last expense to be cut is usually fixed cost. <span>Total variable cost (TVC), which is the summation of all variable expenses, has a direct relationship with quantity. When quantity increases, total variable cost increases; total variable cost declines when quantity decreases. At zero production, total variable cost is always zero. Variable cost examples are payments for labor, raw materials, and supplies. As indicated above, total costs mirror total variable cost, with the difference being a constant fixed cost. The change in total variable cost (which defines marginal cost) declines up to a certain output point and then increases as production approaches capacity limits. In Exhibit 13, total variable cost increases with an increase in quantity. However, the change from 1 to 2 units is 25, calculated as (75 – 50); the change from 9 to 10 units is 350, calculated as (1,550 – 1,200). Another approach to calculating total variable cost is to determine the variable cost per unit of output and multiply this cost figure by the number of production units. Per unit variable cost is the cost of producing each unit exclusive of any fixed cost allocation to production units. One can assign variable cost individually to units or derive an average variable cost per unit. Whenever a firm initiates a downsizing, retrenchment, or defensive strategy, variable cost is the first to be considered for reduction given its variability with output. However, variable cost is reducible only so far because all firms have to maintain a minimum amount of labor and other variable resources to function effectively. <span><body><html>







#cfa-level-1 #microeconomics #reading-15-demand-and-supply-analysis-the-firm
Per unit variable cost is the cost of producing each unit exclusive of any fixed cost allocation to production units.

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Another approach to calculating total variable cost is to determine the variable cost per unit of output and multiply this cost figure by the number of production units. Per unit variable cost is the cost of producing each unit exclusive of any fixed cost allocation to production units. One can assign variable cost individually to units or derive an average variable cost per unit.

Original toplevel document

Costs
of fixed assets locks the firm into a certain amount of fixed cost that is used to finance the physical capital base, technology, and other capital assets. When a firm downsizes, the last expense to be cut is usually fixed cost. <span>Total variable cost (TVC), which is the summation of all variable expenses, has a direct relationship with quantity. When quantity increases, total variable cost increases; total variable cost declines when quantity decreases. At zero production, total variable cost is always zero. Variable cost examples are payments for labor, raw materials, and supplies. As indicated above, total costs mirror total variable cost, with the difference being a constant fixed cost. The change in total variable cost (which defines marginal cost) declines up to a certain output point and then increases as production approaches capacity limits. In Exhibit 13, total variable cost increases with an increase in quantity. However, the change from 1 to 2 units is 25, calculated as (75 – 50); the change from 9 to 10 units is 350, calculated as (1,550 – 1,200). Another approach to calculating total variable cost is to determine the variable cost per unit of output and multiply this cost figure by the number of production units. Per unit variable cost is the cost of producing each unit exclusive of any fixed cost allocation to production units. One can assign variable cost individually to units or derive an average variable cost per unit. Whenever a firm initiates a downsizing, retrenchment, or defensive strategy, variable cost is the first to be considered for reduction given its variability with output. However, variable cost is reducible only so far because all firms have to maintain a minimum amount of labor and other variable resources to function effectively. <span><body><html>




#cfa-level-1 #microeconomics #reading-15-demand-and-supply-analysis-the-firm
One can assign variable cost individually to units or derive an average variable cost per unit.

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e cost is to determine the variable cost per unit of output and multiply this cost figure by the number of production units. Per unit variable cost is the cost of producing each unit exclusive of any fixed cost allocation to production units. <span>One can assign variable cost individually to units or derive an average variable cost per unit.<span><body><html>

Original toplevel document

Costs
of fixed assets locks the firm into a certain amount of fixed cost that is used to finance the physical capital base, technology, and other capital assets. When a firm downsizes, the last expense to be cut is usually fixed cost. <span>Total variable cost (TVC), which is the summation of all variable expenses, has a direct relationship with quantity. When quantity increases, total variable cost increases; total variable cost declines when quantity decreases. At zero production, total variable cost is always zero. Variable cost examples are payments for labor, raw materials, and supplies. As indicated above, total costs mirror total variable cost, with the difference being a constant fixed cost. The change in total variable cost (which defines marginal cost) declines up to a certain output point and then increases as production approaches capacity limits. In Exhibit 13, total variable cost increases with an increase in quantity. However, the change from 1 to 2 units is 25, calculated as (75 – 50); the change from 9 to 10 units is 350, calculated as (1,550 – 1,200). Another approach to calculating total variable cost is to determine the variable cost per unit of output and multiply this cost figure by the number of production units. Per unit variable cost is the cost of producing each unit exclusive of any fixed cost allocation to production units. One can assign variable cost individually to units or derive an average variable cost per unit. Whenever a firm initiates a downsizing, retrenchment, or defensive strategy, variable cost is the first to be considered for reduction given its variability with output. However, variable cost is reducible only so far because all firms have to maintain a minimum amount of labor and other variable resources to function effectively. <span><body><html>




Flashcard 1450312076556

Tags
#cfa-level-1 #microeconomics #reading-15-demand-and-supply-analysis-the-firm
Question
[...] is the cost of producing each unit exclusive of any fixed cost allocation to production units.
Answer
Per unit variable cost


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Per unit variable cost is the cost of producing each unit exclusive of any fixed cost allocation to production units.

Original toplevel document

Costs
of fixed assets locks the firm into a certain amount of fixed cost that is used to finance the physical capital base, technology, and other capital assets. When a firm downsizes, the last expense to be cut is usually fixed cost. <span>Total variable cost (TVC), which is the summation of all variable expenses, has a direct relationship with quantity. When quantity increases, total variable cost increases; total variable cost declines when quantity decreases. At zero production, total variable cost is always zero. Variable cost examples are payments for labor, raw materials, and supplies. As indicated above, total costs mirror total variable cost, with the difference being a constant fixed cost. The change in total variable cost (which defines marginal cost) declines up to a certain output point and then increases as production approaches capacity limits. In Exhibit 13, total variable cost increases with an increase in quantity. However, the change from 1 to 2 units is 25, calculated as (75 – 50); the change from 9 to 10 units is 350, calculated as (1,550 – 1,200). Another approach to calculating total variable cost is to determine the variable cost per unit of output and multiply this cost figure by the number of production units. Per unit variable cost is the cost of producing each unit exclusive of any fixed cost allocation to production units. One can assign variable cost individually to units or derive an average variable cost per unit. Whenever a firm initiates a downsizing, retrenchment, or defensive strategy, variable cost is the first to be considered for reduction given its variability with output. However, variable cost is reducible only so far because all firms have to maintain a minimum amount of labor and other variable resources to function effectively. <span><body><html>







Flashcard 1450313649420

Tags
#cfa-level-1 #microeconomics #reading-15-demand-and-supply-analysis-the-firm
Question
One can assign variable cost individually to units or derive an [...]
Answer
average variable cost per unit.


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One can assign variable cost individually to units or derive an average variable cost per unit.

Original toplevel document

Costs
of fixed assets locks the firm into a certain amount of fixed cost that is used to finance the physical capital base, technology, and other capital assets. When a firm downsizes, the last expense to be cut is usually fixed cost. <span>Total variable cost (TVC), which is the summation of all variable expenses, has a direct relationship with quantity. When quantity increases, total variable cost increases; total variable cost declines when quantity decreases. At zero production, total variable cost is always zero. Variable cost examples are payments for labor, raw materials, and supplies. As indicated above, total costs mirror total variable cost, with the difference being a constant fixed cost. The change in total variable cost (which defines marginal cost) declines up to a certain output point and then increases as production approaches capacity limits. In Exhibit 13, total variable cost increases with an increase in quantity. However, the change from 1 to 2 units is 25, calculated as (75 – 50); the change from 9 to 10 units is 350, calculated as (1,550 – 1,200). Another approach to calculating total variable cost is to determine the variable cost per unit of output and multiply this cost figure by the number of production units. Per unit variable cost is the cost of producing each unit exclusive of any fixed cost allocation to production units. One can assign variable cost individually to units or derive an average variable cost per unit. Whenever a firm initiates a downsizing, retrenchment, or defensive strategy, variable cost is the first to be considered for reduction given its variability with output. However, variable cost is reducible only so far because all firms have to maintain a minimum amount of labor and other variable resources to function effectively. <span><body><html>







#cfa-level-1 #microeconomics #reading-15-demand-and-supply-analysis-the-firm
Whenever a firm initiates a downsizing, retrenchment, or defensive strategy, variable cost is the first to be considered for reduction given its variability with output. However, variable cost is reducible only so far because all firms have to maintain a minimum amount of labor and other variable resources to function effectively.

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oduction units. Per unit variable cost is the cost of producing each unit exclusive of any fixed cost allocation to production units. One can assign variable cost individually to units or derive an average variable cost per unit. <span>Whenever a firm initiates a downsizing, retrenchment, or defensive strategy, variable cost is the first to be considered for reduction given its variability with output. However, variable cost is reducible only so far because all firms have to maintain a minimum amount of labor and other variable resources to function effectively.<span><body><html>

Original toplevel document

Costs
of fixed assets locks the firm into a certain amount of fixed cost that is used to finance the physical capital base, technology, and other capital assets. When a firm downsizes, the last expense to be cut is usually fixed cost. <span>Total variable cost (TVC), which is the summation of all variable expenses, has a direct relationship with quantity. When quantity increases, total variable cost increases; total variable cost declines when quantity decreases. At zero production, total variable cost is always zero. Variable cost examples are payments for labor, raw materials, and supplies. As indicated above, total costs mirror total variable cost, with the difference being a constant fixed cost. The change in total variable cost (which defines marginal cost) declines up to a certain output point and then increases as production approaches capacity limits. In Exhibit 13, total variable cost increases with an increase in quantity. However, the change from 1 to 2 units is 25, calculated as (75 – 50); the change from 9 to 10 units is 350, calculated as (1,550 – 1,200). Another approach to calculating total variable cost is to determine the variable cost per unit of output and multiply this cost figure by the number of production units. Per unit variable cost is the cost of producing each unit exclusive of any fixed cost allocation to production units. One can assign variable cost individually to units or derive an average variable cost per unit. Whenever a firm initiates a downsizing, retrenchment, or defensive strategy, variable cost is the first to be considered for reduction given its variability with output. However, variable cost is reducible only so far because all firms have to maintain a minimum amount of labor and other variable resources to function effectively. <span><body><html>




Flashcard 1450316270860

Tags
#cfa-level-1 #microeconomics #reading-15-demand-and-supply-analysis-the-firm
Question
Whenever a firm initiates a downsizing, retrenchment, or defensive strategy, [...] is the first to be considered for reduction given its variability with output.
Answer
variable cost


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Whenever a firm initiates a downsizing, retrenchment, or defensive strategy, variable cost is the first to be considered for reduction given its variability with output. However, variable cost is reducible only so far because all firms have to maintain a minimum amount of lab

Original toplevel document

Costs
of fixed assets locks the firm into a certain amount of fixed cost that is used to finance the physical capital base, technology, and other capital assets. When a firm downsizes, the last expense to be cut is usually fixed cost. <span>Total variable cost (TVC), which is the summation of all variable expenses, has a direct relationship with quantity. When quantity increases, total variable cost increases; total variable cost declines when quantity decreases. At zero production, total variable cost is always zero. Variable cost examples are payments for labor, raw materials, and supplies. As indicated above, total costs mirror total variable cost, with the difference being a constant fixed cost. The change in total variable cost (which defines marginal cost) declines up to a certain output point and then increases as production approaches capacity limits. In Exhibit 13, total variable cost increases with an increase in quantity. However, the change from 1 to 2 units is 25, calculated as (75 – 50); the change from 9 to 10 units is 350, calculated as (1,550 – 1,200). Another approach to calculating total variable cost is to determine the variable cost per unit of output and multiply this cost figure by the number of production units. Per unit variable cost is the cost of producing each unit exclusive of any fixed cost allocation to production units. One can assign variable cost individually to units or derive an average variable cost per unit. Whenever a firm initiates a downsizing, retrenchment, or defensive strategy, variable cost is the first to be considered for reduction given its variability with output. However, variable cost is reducible only so far because all firms have to maintain a minimum amount of labor and other variable resources to function effectively. <span><body><html>







#cfa-level-1 #microeconomics #reading-15-demand-and-supply-analysis-the-firm
variable cost is reducible only so far because all firms have to maintain a minimum amount of labor and other variable resources to function effectively.

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Whenever a firm initiates a downsizing, retrenchment, or defensive strategy, variable cost is the first to be considered for reduction given its variability with output. However, variable cost is reducible only so far because all firms have to maintain a minimum amount of labor and other variable resources to function effectively.

Original toplevel document

Costs
of fixed assets locks the firm into a certain amount of fixed cost that is used to finance the physical capital base, technology, and other capital assets. When a firm downsizes, the last expense to be cut is usually fixed cost. <span>Total variable cost (TVC), which is the summation of all variable expenses, has a direct relationship with quantity. When quantity increases, total variable cost increases; total variable cost declines when quantity decreases. At zero production, total variable cost is always zero. Variable cost examples are payments for labor, raw materials, and supplies. As indicated above, total costs mirror total variable cost, with the difference being a constant fixed cost. The change in total variable cost (which defines marginal cost) declines up to a certain output point and then increases as production approaches capacity limits. In Exhibit 13, total variable cost increases with an increase in quantity. However, the change from 1 to 2 units is 25, calculated as (75 – 50); the change from 9 to 10 units is 350, calculated as (1,550 – 1,200). Another approach to calculating total variable cost is to determine the variable cost per unit of output and multiply this cost figure by the number of production units. Per unit variable cost is the cost of producing each unit exclusive of any fixed cost allocation to production units. One can assign variable cost individually to units or derive an average variable cost per unit. Whenever a firm initiates a downsizing, retrenchment, or defensive strategy, variable cost is the first to be considered for reduction given its variability with output. However, variable cost is reducible only so far because all firms have to maintain a minimum amount of labor and other variable resources to function effectively. <span><body><html>




Flashcard 1450319678732

Tags
#cfa-level-1 #microeconomics #reading-15-demand-and-supply-analysis-the-firm
Question
variable cost is reducible only so far because all firms have to maintain a minimum amount of [...] and other variable resources to function effectively.
Answer
labor


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variable cost is reducible only so far because all firms have to maintain a minimum amount of labor and other variable resources to function effectively.

Original toplevel document

Costs
of fixed assets locks the firm into a certain amount of fixed cost that is used to finance the physical capital base, technology, and other capital assets. When a firm downsizes, the last expense to be cut is usually fixed cost. <span>Total variable cost (TVC), which is the summation of all variable expenses, has a direct relationship with quantity. When quantity increases, total variable cost increases; total variable cost declines when quantity decreases. At zero production, total variable cost is always zero. Variable cost examples are payments for labor, raw materials, and supplies. As indicated above, total costs mirror total variable cost, with the difference being a constant fixed cost. The change in total variable cost (which defines marginal cost) declines up to a certain output point and then increases as production approaches capacity limits. In Exhibit 13, total variable cost increases with an increase in quantity. However, the change from 1 to 2 units is 25, calculated as (75 – 50); the change from 9 to 10 units is 350, calculated as (1,550 – 1,200). Another approach to calculating total variable cost is to determine the variable cost per unit of output and multiply this cost figure by the number of production units. Per unit variable cost is the cost of producing each unit exclusive of any fixed cost allocation to production units. One can assign variable cost individually to units or derive an average variable cost per unit. Whenever a firm initiates a downsizing, retrenchment, or defensive strategy, variable cost is the first to be considered for reduction given its variability with output. However, variable cost is reducible only so far because all firms have to maintain a minimum amount of labor and other variable resources to function effectively. <span><body><html>







#charisma #myth
emotional contagion. Behavioral scientists define this as “the process by which the emotions expressed by one individual are ‘caught’ by another.”

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#charisma #myth
tendency to mimic the body language of others is technically called limbic resonance, and it’s hardwired into the human brain. Limbic resonance is made possible thanks to a certain class of neurons called oscillators, which coordinate people physically by regulating how and when their bodies move together.

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#charisma #myth
Imitating someone’s body language is an easy way to establish trust and rapport. This technique, which is often called mirroring or mimicking, is the conscious application of something that many charismatic people do instinctively.

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#charisma #myth
Because people focus primarily on themselves while interacting, they usually won’t notice that you’re mirroring unless you are exceedingly obvious about it. However, here are some ways to increase subtlety: Be selective: do only what feels natural to you. For instance, some gestures are gender-specific. Use variations in amplitude: if they make a big gesture, you could make a smaller one. Use lag time: let a few seconds elapse before you move into a mirrored position

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#charisma #myth
Mirror-then-lead is a smart strategy when the person you’re interacting with needs reassurance— when they’re feeling nervous or timid, anxious or awkward, stiff or withdrawn. With any of these emotional states, mirror them to establish comfort and rapport, and then gradually draw them out. In these situations, it’s not a good idea to try to influence their body language too forcefully.

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#charisma #myth
When people are sitting across from each other with a table dividing them, they tend to speak in shorter sentences, are more likely to argue, and can recall less of what was said

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#charisma #myth
The next time you want to establish warm rapport with someone, avoid a confrontational seating arrangement and instead sit either next to or at a 90-degree angle from them. These are the positions in which we feel most comfortable. In fact, this is an exercise you can try out with a partner. ♦ Start a conversation sitting next to each other. ♦ After five minutes, change positions so that you’re sitting across from each other. You’ll likely feel a clear difference in comfort level. ♦ After another five minutes, move to a 90-degree angle and feel the difference. ♦ Finally, come back to your original position sitting next to each other. Pay close attention to the rise and fall of feelings of trust and comfort throughout the exercise.

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#charisma #myth
If you want someone to feel comfortable, avoid seating them with their back to an open space, particularly if others are moving behind them. This kind of seating position causes the breathing rate, heart rate, and blood pressure to increase rapidly, especially if the person’s back is toward an open door or a window at ground level. 9 And by association, their discomfort would likely affect their perception of you.

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#charisma #myth
Anthropologist Helen Fisher explains that when you stare with intensity at someone, it can speed up their heart rate and send a hormone called phenylethylamine, or PEA, coursing through their bloodstream. PEA is the same hormone that produces the phenomenon we call love at first sight.

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#charisma #myth
Eye contact is so meaningful to us that our brains are hardwired to experience separation distress whenever someone with whom we have significant eye contact turns away. One good way to avoid creating this anxiety is to keep eye contact for three full seconds at the end of your interaction with someone.

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#charisma #myth
Two of the most common eye-contact issues people have are lack of eye contact due to shyness and lack of eye contact due to distraction. Either, unfortunately, can ruin your charisma potential. One technique works equally well for both of these: delving into sensations. As you look into someone’s eyes, pay attention to the physical sensations you are feeling in that very moment. If shyness is the issue, this helps to dedramatize the discomfort. If distraction is the issue, this technique will help you keep your mind focused in the present moment. You can also look at the different colors you see in their eyes, the different shades playing around their pupils.

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#charisma #myth
To truly understand how different your face appears when your eyes are relaxed and open, go see the transformation for yourself. ♦ Find a room with a mirror where you won’t be disturbed for a few minutes. ♦ Close your eyes and think of a recent annoyance—some minor issue that’s been bugging you lately, or an unpleasant task such as doing your taxes. ♦ When you feel the irritation take hold, open your eyes and look closely in the mirror. Note the tension around your eyes, their narrowness. ♦ Now close your eyes and think of something that would induce warm feelings—a recent pleasant experience, like time spent with a good friend. ♦ When the warmth has arisen, open your eyes and look at that precise kind of relaxation. That’s what warmth looks like. ♦ Close your eyes once more and think of an exciting time when you felt full of confidence and on top of the world—receiving a triumph, an award, some brilliant news. ♦ When you’ve accessed the feeling of confidence, open your eyes again and note closely what they look like now. That’s what confidence looks like

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#charisma #myth
This is a great exercise to use before any meeting or interaction where you want to both feel and broadcast confidence—for instance, before a job interview, or before meeting someone who’s a bit intimidating. Follow these seven steps to convey confident body language: 1. Make sure you can breathe. Loosen any clothing if need be. 2. Stand up and shake up your body. 3. Take a wide stance and plant your feet firmly on the ground. A wide, stable stance helps you both feel and project more confidence

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#charisma #myth
4. Stretch your arms to the ceiling, trying to touch it with your fingertips. 5. Now stretch your arms to the walls on either side of you, trying to touch them. 6. Bring your arms loosely to your sides, and roll your shoulders up and then back. 7. INFLATE. Try to take up as much space as possible. Imagine puffing up like a gorilla, doubling in size.

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#charisma #myth
The desire to convey reassurance can stem from two different sources: Empathy: wanting to ensure that the other person feels heard and understood and knows you’re paying attention Insecurity: wanting to please or appease the person you’re interacting with

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#charisma #myth
When you want to increase your poise, there are three major issues to look out for. The first is excessive or rapid nodding. Nodding once for emphasis or to express agreement is fine and can be an effective communication method, but nodding three or four times in rapid succession is not.

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#charisma #myth
The second hindrance is excessive verbal reassurance: making a sound, such as “uh-huh,” or a half-sentence, such as “Oh, I agree.” Done once, and consciously, this is fine; multiple times per sentence is not.

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#charisma #myth
The third issue is restlessness or fidgeting (tapping your pencil or foot, or rearranging items on the table). Fidgeting decreases presence, thus charisma.

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#charisma #myth
Catch yourself when you find yourself nodding or verbally reassuring, and try to replace it with stillness and silence. Aim to get comfortable with silence, inserting pauses between your sentences or even midsentence. If you want to speed up the process, ask a friend or colleague to tell you whenever they catch you nodding or reassuring. One very effective trick is to carry around a stack of one-dollar bills and commit to ripping one up every time you trip. For maximum effectiveness, ask a friend, spouse, or colleague to help catch whichever habit you want to break.

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#charisma #myth
When people are defensive, break their body language lock by handing them something to look at or something they will have to lean forward to take

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#charisma #myth
in general, when you have a group of difficult people to convince, you’ll have much greater chances of success if you work on each of them individually

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#charisma #myth
You could indeed ask your opponents for their help or ask them for a favor. Better still, ask them for something they can give without incurring any cost: their opinion. Asking for someone’s opinion is a better strategy than asking for their advice, because giving advice feels like more effort, as they have to tailor a recommendation to your situation, whereas with an opinion, they can just spout whatever is on their mind

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#charisma #myth
Best of all is to call upon the benefits of rationalization through something they’ve already done for you. Find ways to remind them of any help they’ve given you in the past. Express your appreciation and gratitude, highlight the choice they made, the effort they put in; and if they put their reputation on the line for you in any way, play it up.

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#charisma #myth
First, get yourself into the right internal state. Access compassion so that it plays out across your body language. Put yourself in their shoes; imagine in vivid detail what it’s like inside their head, inside their life. Imagine both of you with angel wings working toward a common mission. Focus on a compassionate phrase, such as “Just love as much as you can from wherever you are.” Try to convey empathy in your facial expressions, your tone of voice, and your words

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#charisma #myth
There are four crucial steps to charismatically delivering criticism. First, think about your timing and the location. Try to be as empathetic as possible in your choice of both. Consider the individual’s levels of stress and fatigue. With criticism (or with “constructive feedback”), try to provide it as soon as possible after witnessing the behavior you want to change. Just be sure the person is in a physically and emotionally receptive state when you do so. Second, get into the right mindset, one of compassion and empathy. Yes, even when delivering criticism, your compassion will play out across your body language and affect the entire interaction in a positive way. Warmth is also important here. Accessing kindness or focus charisma will ease the situation, whereas authority charisma would worsen it

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#charisma #myth
To access the right mental state, you can also try thinking of a person whom you highly respect just before you deliver criticism. You might think of a favorite grandparent, mentor, spiritual figure, or anyone who is important to you. If you were to make this comment to them, or in front of them, how would you word your criticism?

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#charisma #myth
Third, decide exactly what points you want to make: be specific. Focusing on a few key points rather than making an exhaustive list will prevent the other person from feeling overwhelmed. In addition, if your criticism is too general, their danger-wary brain might imagine the worst possible interpretations of your message. Fourth, depersonalize. As much as possible, communicate that what you’re critiquing is the behavior, not the person.

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#charisma #myth
If you start your criticism with a positive beginning, it will affect the rest of the experience. In the first moments, when people are most apprehensive, what they need is reassurance.

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#charisma #myth
Once you’ve started on a positive note, you can bring up the actual issue you want to address. Tell people exactly what you want to see from them, as opposed to what you don’t want to see.

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#charisma #myth
When you tell the person you are criticizing the corrective action you’d like to see, depersonalize the behavior change just as you had the criticism.

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#charisma #myth
When you sense defensiveness, whether through their facial expressions, body language, or tone of voice, dial up your warmth to move them back into a more positive frame of mind. You can do this in two ways: Verbally: Encourage positive mental associations. For example, mention something they’ve done well in the past or something in this situation that you approve of. Nonverbally: Use your body language to influence theirs. Get back into a state of goodwill so that it plays out across your face. The mirror neurons in their brain will replicate the emotions they’re seeing in you, putting them in a more positive state of mind as well

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#charisma #myth
When closing the conversation, if you can, aim to end on a positive note. Remember how important beginnings and endings are—they can color the whole interaction. This is when you can put the emphasis on three important points: Next steps: Review the steps that will be taken to improve the situation, particularly if you’re going to do any of it together. Give the sense of constructive, forward motion. Appreciation: Tell them how much you appreciate how well they took your feedback. Praise even the slightest good effort here; you’re providing positive reinforcement so they’ll improve over time. A positive future: Bring up anything that both of you can look forward to in the future, such as exciting events or upcoming projects—whatever conveys the fact that you’re looking forward to future interactions.

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#charisma #myth
First, as always, get into the right mental state. This means, first and foremost, forgiving yourself. Yes, I’m serious. Though it may sound counterintuitive, having warmth toward yourself—even though you may be at fault—is necessary to prevent making the situation worse through negative body language.

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#charisma #myth
Just coming into a conversation with the mindset of “Help me understand how you see things” can change the outcome completely.

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#charisma #myth
On the phone, always ask, “Is this a good time for you?” before launching into conversation. No matter how important your information or how pleasant your call, bad timing means bad results for you. The person may be under a deadline or in the midst of a crisis.

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#charisma #myth
To communicate presence, Michael Feuer, the founder of OfficeMax, says that he often closes his eyes when listening. I was struck by how good a listener he was: even on the phone, I could feel the intensity of his listening, how well he absorbed everything I was saying

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#charisma #myth
Here’s one specific—and surprisingly effective—recommendation for phone charisma, courtesy of author Leil Lowndes: Do not answer the phone in a warm or friendly manner. Instead, answer crisply and professionally. Then, only after you hear who is calling, let warmth or even enthusiasm pour forth in your voice.

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#charisma #myth
write out the e-mail as you normally would, but before you send it, simply cut and paste so that whatever pertains to the other person appears first and most prominently

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#charisma #myth
When delivering apologies, show presence in hearing them out completely, show warmth in your apology, and show power in how you’ll correct the mistake or prevent its reoccurrence.

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#charisma #myth
Select the single most important idea you want to convey and make it as crystal clear and easy to understand as you possibly can. Ideally, you should be able to articulate your message in one sentence. Within this one main message, have three to five key supporting points. The human brain thinks in triads (from Olympic medals to fairy tales, it’s three medals, three princes, three bears), and it cannot immediately comprehend numbers greater than four

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#charisma #myth
Each one of your supporting points should open with entertaining anecdotes, fascinating facts, compelling statistics, great metaphors, examples, and analogies

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#charisma #myth
telling stories as a way to transmit information to one another. For your stories to be most effective, choose characters that are similar to the people in your audience to make them more relatable and make them as entertaining (and short!) as a Hollywood sneak preview

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#charisma #myth
Using metaphors and analogies can be a highly effective way of capturing your audience’s imagination. For maximum impact, choose images and analogies that would appeal to a young audience. The speeches that give us a feeling of awe and wonder are those that appeal to our childhood roots.

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#charisma #myth
Make even numbers and statistics personal, meaningful, and relatable for your audience.

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#charisma #myth
Whether you use a story, example, number, or statistic, make sure that you close with either a clear point or a transition to the action step you want your audience to take. Remember to make this so simple that even a multitasking, partially listening audience member would get it

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#charisma #myth
Once you’ve created your structure, you can start crafting your sentences. The pointers given in Chapter 8 will also help you choose your words here: It’s all about them. Use the word you as often as possible. Use their words, their stories, their metaphors: hole in one for golfers, shipwreck for sailors. Try also to match your verbs to your audience: lead or initiate for businessmen, build for engineers, craft for artists

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#charisma #myth
Get graphic. The brain thinks in pictures, so choose language that is vivid and sensory-rich. Beware of negotiations: avoid the “no problem” trap. Keep it short. With each sentence, ask yourself: What value is this sentence delivering? Even when crafting stories, give only details that convey comprehension or enjoyment. Think sneak preview, not full-length movie.

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#charisma #myth
You’re going to be in the spotlight, so think carefully about the message you want to convey through your clothing. Is it authority? Power? Warmth? Keep in mind what social psychologists’ research reveals about chromatic effects: 2 Red conveys energy, passion. Wear red to wake up an audience. Black shows you’re serious and that you won’t take no for an answer. White exudes honesty and innocence, which is why defendants often choose it in the courtroom. Blue emits trust. The darker the shade, the deeper the level of trust it elicits. Gray is a good neutral, the quintessential color of business. Orange and yellow are not recommended. Because they are the first to attract the human eye, they are also the first to tire it.

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#charisma #myth
One interesting technique used by magicians is to run through the entire presentation once with their eyes closed

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#charisma #myth
Another good practice is to have your speech audiotaped or, better yet, videotaped, and to count what professional speakers call irritants. These are any sounds or movements that do not add to your message. Because the audience is watching your every move, every sound and facial expression you make is a form of communication that demands a portion of their attention. Be strategic: make sure you’re getting value out of each nonverbal gesture you make, and limit superfluous gestures to avoid wasting any bit of your audience’s attention

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#charisma #myth
A fireside chat is a comfortable conversation that creates a sense of intimacy. Imagine sitting by a fire telling stories to your favorite friends or having a comfortable conversation with just one person. To make your audience feel particularly special, speak as if you were sharing a secret. Another way to make people feel special as you roam about the stage is to give one to two seconds of eye contact per person.

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#charisma #myth
In addition to practicing, it can be helpful to ask a member of the audience to give you a prearranged signal reminding you to slow down. It’s really worth paying attention to your tempo because the slower you speak, the more thoughtful and deliberate you will sound, and the more attention people will give to what you say

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#charisma #myth
When you walk on stage, come to the center, face the audience, and stop. Remain completely silent as you count three full seconds while slowly sweeping your eyes across the crowd and making eye contact. This may feel endless, but it will be well worth it. Nothing rivets an audience’s attention like this kind of silence

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#charisma #myth
Just considering, even for a second, the mistake you made as a good thing can be enough to stop the fight-or-flight response in its tracks. Because the brain’s first reaction to new concepts is to accept them as valid, in the extra second it takes disbelief to arise, you will already have moved on with renewed confidence. You can tell yourself, for instance, that business moguls and entertainers make mistakes purposefully to make themselves more relatable to the audience.

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#charisma #myth
Midcourse Corrections ♦ Check your body. Make sure that no tense posture is worsening your internal state. ♦ Take a deep breath and relax your body. ♦ Destigmatize and dedramatize. Remember that this happens to everyone, and it will pass. ♦ If any negative thoughts are present, remember that they’re just thoughts, and not necessarily valid. ♦ Find little things to be grateful for: your ability to breathe, the fact that you will still be alive by the end of this. ♦ Imagine getting a great hug from someone you trust for twenty seconds (of course, you may not have twenty seconds, but if you do, this is remarkably effective). Once your threat response is quieted down, to bring yourself back into a state of confidence remember a moment in your life when you felt absolute triumph.

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