Carl's Computer Center Sells Computers to Business Firms

question 57

Essay

Carl's Computer Center sells computers to business firms.Businesses then use the computers to produce other goods and services.Over the past year,sales representatives were paid $3.5 million,$0.5 million went for rent on the building,$0.5 million went for taxes,$0.5 million was profit for Carl,and $10 million was paid for computers at the wholesale level.What was the firm's total contribution to GDP?

Understand the role and impact of mediators in the negotiation process.

Comprehend the concept and utility of frames in negotiation.

Identify the conditions under which negotiations are more likely to succeed or fail.

Recognize the various formats and settings in which negotiations can occur.

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Definitions:

Economic Profits

The difference between the revenue received from the sale of an output and the opportunity cost of the inputs used.

Fixed Costs

Costs that do not change with the level of output produced by a firm, such as rent and salaries.

Variable Costs

Expenses that change in proportion to the production output or sales volume of a company.

AVC

Average Variable Cost, calculated by dividing the total variable costs by the quantity of output produced.