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You Have Been Hired as a Consultant for a Nationwide

question 53

Essay

You have been hired as a consultant for a nationwide real estate firm,Cross & Deptford,who are interested in achieving better organization between branches by updating their information systems,but are not sure what will suit their needs.What will you recommend they do in order to determine the most effective IT projects?


Definitions:

Marginal Revenue

The additional income generated from selling one more unit of a good or service, crucial in determining the most profitable level of production.

Average Total Cost (ATC)

The sum of all the production costs divided by the quantity of output produced, representing the per unit cost of production.

Average Variable Cost (AVC)

The total variable costs of production divided by the quantity of output produced, indicating the average cost of producing each unit excluding fixed costs.

Marginal Cost (MC)

The expense incurred from manufacturing an extra unit of a product or service.

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