Misplaced Pages

#342657

63-589: San Pedro Claver , commonly known as San Pedro , is an Equatorial Guinean football club club based in Ebibeyin . The club is likely best known for their 2007 appearance in the CAF Confederation Cup, in which they lost to Benfica Luanda of Angola 7–1 on aggregate in the preliminary round. San Pedro Claver withdrew from the 2008 championship and no record exists of their being active since. This article about an Equatoguinean football club

126-459: A monopolist , which chooses its level of output simultaneously with its selling price. In the case of monopoly, the company will produce more products because it can still make normal profits. To get the most profit, you need to set higher prices and lower quantities than the competitive market. However, the revenue function takes into account the fact that higher levels of output require a lower price in order to be sold. An analogous feature holds for

189-687: A business entity. The club signs commercial contract with players as well as non-playing personnel. As any business entity it has its own secretary or secretarial department as well as financial, legal, accounting and other departments. The club also often has a department or someone who popularizes it or interacts with public on behalf of the club (public affair). The club may also contain own agronomist or whole agricultural department. An association football club often times provides some medical support in forms of first or urgent medical aid and physical rehabilitation or recovery plans for its players. Profit maximization In economics , profit maximization

252-420: A firm's demand and cost conditions are such that marginal profits are greater than zero for all levels of production up to a certain maximum. In this case marginal profit plunges to zero immediately after that maximum is reached; hence the M π = 0 {\displaystyle {\text{M}}\pi =0} rule implies that output should be produced at the maximum level, which also happens to be

315-401: A firm's optimal level of output, a firm that is not perfectly competitive can equivalently set price to maximize profit (since setting price along a given demand curve involves picking a preferred point on that curve, which is equivalent to picking a preferred quantity to produce and sell). The profit maximization conditions can be expressed in a "more easily applicable" form or rule of thumb than

378-406: A function giving the cost of producing each potential output level, the firm may have input cost functions giving the cost of acquiring any amount of each input, along with a production function showing how much output results from using any combination of input quantities. In this case one can use calculus to maximize profit with respect to input usage levels, subject to the input cost functions and

441-485: A given season. The home ground can either be owned by the club itself or by some other entity such as a business, city or district. Clubs often are the sole event organisers of their home games. Stadium naming rights are sometimes procured by sponsors to generate additional sources of revenue for the football club. Normally this requires the club (or its owners) to have sole ownership of the stadium of which naming rights are sold. An association football club exists as

504-506: A highly sought after product to an entertainment sector audience. It therefor acts as a market intermediator between its product (the football players) and its market (the supporters). In doing so, it fills a presence within a certain geographic area where football is a natural part of the culture. Football clubs may also expand their area of reach further from the local region of origin to whom they belong. Many association football clubs will have either one or more youth systems connected to

567-407: A price determined by industry supply and demand. Average total costs are represented by curve ATC {\displaystyle {\text{ATC}}} . Total economic profit is represented by the area of the rectangle PABC ¯ {\displaystyle {\overline {\text{PABC}}}} . The optimum quantity ( Q {\displaystyle Q} ) is the same as

630-509: A yearly basis for excellent performances. The designs, logos and names of professional football clubs are often licensed trademarks. The difference between a football team and a (professional) football club is incorporation . A football club is an entity which is formed and governed by a committee and has members which may consist of supporters in addition to players. A consequence of the FIFA rules and regulations for association football clubs

693-645: Is a stub . You can help Misplaced Pages by expanding it . Football club (association football) The sport of association football allows teams that partake in some sort of club activity to participate in tournaments such as leagues and other competitions. Teams must register their players as well as staff and other personnel to be eligible to represent the club in any activity as it regards to association football competitions. In association football terminology, competitions are referred to as "club competitions". Supporters may also acquire membership rights within their club. Even sponsors may be accounted for as members of

SECTION 10

#1732797379343

756-722: Is between − 1 {\displaystyle -1} and − ∞ {\displaystyle -\infty } (that is, if demand is elastic at that level of output). The intuition behind this result is that, if demand is inelastic at some value Q 1 {\displaystyle Q_{1}} then a decrease in Q {\displaystyle Q} would increase P {\displaystyle P} more than proportionately, thereby increasing revenue P ⋅ Q {\displaystyle P\cdot Q} ; since lower Q {\displaystyle Q} would also lead to lower total cost, profit would go up due to

819-447: Is greater than marginal cost at some level of output, marginal profit is positive and thus a greater quantity should be produced, and if marginal revenue is less than marginal cost, marginal profit is negative and a lesser quantity should be produced. At the output level at which marginal revenue equals marginal cost, marginal profit is zero and this quantity is the one that maximizes profit. Since total profit increases when marginal profit

882-407: Is important for sole traders and small businesses let alone big businesses but none the less all profit maximization is a matter of each business stage and greater returns for profit sharing thus higher wages and motivation. Marginal cost and marginal revenue , depending on whether the calculus approach is taken or not, are defined as either the change in cost or revenue as each additional unit

945-506: Is maximized. There are several perspectives one can take on profit maximization. First, since profit equals revenue minus cost , one can plot graphically each of the variables revenue and cost as functions of the level of output and find the output level that maximizes the difference (or this can be done with a table of values instead of a graph). Second, if specific functional forms are known for revenue and cost in terms of output, one can use calculus to maximize profit with respect to

1008-454: Is maximized. On the other hand, if the marginal revenue is less than the marginal cost ( MR < MC {\displaystyle {\text{MR}}<{\text{MC}}} ), then too its total profit is not maximized, because producing one unit less will reduce total cost more than total revenue gained, thus giving the firm more total profit. In this case, a "rational" firm has an incentive to reduce its output level until its total profit

1071-493: Is positive and total profit decreases when marginal profit is negative, it must reach a maximum where marginal profit is zero—where marginal cost equals marginal revenue—and where lower or higher output levels give lower profit levels. In calculus terms, the requirement that the optimal output have higher profit than adjacent output levels is that: The intersection of MR {\displaystyle {\text{MR}}} and MC {\displaystyle {\text{MC}}}

1134-429: Is produced or the derivative of cost or revenue with respect to the quantity of output. For instance, taking the first definition, if it costs a firm $ 400 to produce 5 units and $ 480 to produce 6, the marginal cost of the sixth unit is 80 dollars. Conversely, the marginal income from the production of 6 units is the income from the production of 6 units minus the income from the production of 5 units (the latter item minus

1197-406: Is shown in the next diagram as point A {\displaystyle {\text{A}}} . If the industry is perfectly competitive (as is assumed in the diagram), the firm faces a demand curve ( D {\displaystyle {\text{D}}} ) that is identical to its marginal revenue curve ( MR {\displaystyle {\text{MR}}} ), and this is a horizontal line at

1260-438: Is that players are not allowed to be owned by any legal entity other than the clubs themselves. This means that the involvement of external investors in the acquirement of players to the club must only involve the eventual transfer of the rights to the contract of the player in question, and not the contract itself. There are several professional football clubs that are publicly traded. Normally, football clubs are not run with

1323-706: Is the price elasticity of demand characterizing the demand curve of the firms' customers, which is negative. Then setting MC = MR {\displaystyle {\text{MC}}={\text{MR}}} gives MC = P + P PED {\displaystyle {\text{MC}}=P+{\frac {P}{\text{PED}}}} so P − MC P = − 1 PED {\displaystyle {\frac {P-{\text{MC}}}{P}}={\frac {-1}{\text{PED}}}} and P = M C 1 + ( 1 PED ) {\displaystyle P={\frac {MC}{1+\left({\frac {1}{\text{PED}}}\right)}}} . Thus,

SECTION 20

#1732797379343

1386-453: Is the short run or long run process by which a firm may determine the price , input and output levels that will lead to the highest possible total profit (or just profit in short). In neoclassical economics , which is currently the mainstream approach to microeconomics , the firm is assumed to be a " rational agent " (whether operating in a perfectly competitive market or otherwise) which wants to maximize its total profit, which

1449-410: Is the amount of money that a company receives from its normal business activities, usually from the sale of goods and services (as opposed to monies from security sales such as equity shares or debt issuances). The five ways formula is to increase leads, conversation rates, average dollar sales, the average number of sales, and average product profit. Profits can be increased by up to 1,000 percent, this

1512-404: Is the difference between its total revenue and its total cost. Measuring the total cost and total revenue is often impractical, as the firms do not have the necessary reliable information to determine costs at all levels of production. Instead, they take more practical approach by examining how small changes in production influence revenues and costs. When a firm produces an extra unit of product,

1575-449: Is the fact that clubs may deliberately price matchday tickets below market value , instead favouring a higher stadium attendance or membership priority access over total matchday revenues. Another notable example is the prevalence of community initiatives by professional football clubs. The English Premier League is wholly owned by its 20 participating member clubs. Professional football clubs also act as market entities offering

1638-400: Is the height of B {\displaystyle {\text{B}}} ; the maximal profit is measured as the length of the segment CB ¯ {\displaystyle {\overline {\text{CB}}}} . This output level is also the one at which the total profit curve is at its maximum. If, contrary to what is assumed in the graph, the firm is not a perfect competitor in

1701-855: Is the height of the demand curve at that quantity (denoted P m {\displaystyle P_{m}} ). A generic derivation of the profit maximisation level of output is given by the following steps. Firstly, suppose a representative firm i {\displaystyle i} has perfect information about its profit, given by: where TR {\displaystyle {\text{TR}}} denotes total revenue and TC {\displaystyle {\text{TC}}} denotes total costs. The above expression can be re-written as: where p {\displaystyle p} denotes price (marginal revenue), q {\displaystyle q} quantity, and c {\displaystyle c} marginal cost. The firm maximises their profit with respect to quantity to yield

1764-419: Is the one at which this difference reaches its maximum. In the accompanying diagram, the linear total revenue curve represents the case in which the firm is a perfect competitor in the goods market, and thus cannot set its own selling price. The profit-maximizing output level is represented as the one at which total revenue is the height of C {\displaystyle {\text{C}}} and total cost

1827-622: Is the product of marginal revenue and the marginal product of labor or MRP L = MR ⋅ MP L {\displaystyle {\text{MRP}}_{L}={\text{MR}}\cdot {\text{MP}}_{L}} . The maximization of producer surplus can in some cases reduce consumer surplus . Some forms of producer profit maximization are considered anti-competitive practices and are regulated by competition law . Maximization of short-term producer profit can reduce long-term producer profit, which can be exploited by predatory pricing such as dumping . Market quotas reflect

1890-705: The above perspectives use. The first step is to rewrite the expression for marginal revenue as MR = Δ TR Δ Q = P Δ Q + Q Δ P Δ Q = P + Q Δ P Δ Q {\displaystyle {\begin{aligned}{\text{MR}}=&{\frac {\Delta {\text{TR}}}{\Delta Q}}\\=&{\frac {P\Delta Q+Q\Delta P}{\Delta Q}}\\=&P+{\frac {Q\Delta P}{\Delta Q}}\\\end{aligned}}} , where P {\displaystyle P} and Q {\displaystyle Q} refer to

1953-462: The additional revenue gained from selling it is called the marginal revenue ( MR {\displaystyle {\text{MR}}} ), and the additional cost to produce that unit is called the marginal cost ( MC {\displaystyle {\text{MC}}} ). When the level of output is such that the marginal revenue is equal to the marginal cost ( MR = MC {\displaystyle {\text{MR}}={\text{MC}}} ), then

San Pedro Claver - Misplaced Pages Continue

2016-454: The club of affiliation. This is a reason as to why the sport came to be called association football. The exact requirements for club licensing are regulated by FIFA and implemented on a national level within each national member association. The majority of association football clubs take part in a league system . These league systems are governed on a continental level by the six regional FIFA confederations. Football clubs exist all over

2079-427: The combination of increased revenue and decreased cost. Thus, Q 1 {\displaystyle Q_{1}} does not give the highest possible profit. The general rule is that the firm maximizes profit by producing that quantity of output where marginal revenue equals marginal cost . The profit maximization issue can also be approached from the input side. That is, what is the profit maximizing usage of

2142-409: The commonly assumed variable input, labor. The marginal revenue product is the change in total revenue per unit change in the variable input, that is, MRP L = Δ TR Δ L {\displaystyle {\text{MRP}}_{L}={\frac {\Delta {\text{TR}}}{\Delta L}}} . MRP L {\displaystyle {\text{MRP}}_{L}}

2205-435: The diagram illustrating the total cost–total revenue perspective, the firm maximizes profit at the point where the slopes of the total cost line and total revenue line are equal. An increase in fixed cost would cause the total cost curve to shift up rigidly by the amount of the change. There would be no effect on the total revenue curve or the shape of the total cost curve. Consequently, the profit maximizing output would remain

2268-1019: The firm loses on the units it could have sold at the higher price" —that is, if the price of all units had not been pulled down by the effort to sell more units. These units that have lost revenue are called the infra-marginal units. That is, selling the extra unit results in a small drop in price which reduces the revenue for all units sold by the amount Q ⋅ ( Δ P Δ Q ) {\displaystyle Q\cdot \left({\frac {\Delta P}{\Delta Q}}\right)} . Thus, MR = P + Q ⋅ Δ P Δ Q = P + P ⋅ Q P ⋅ Δ P Δ Q = P + P PED {\displaystyle {\text{MR}}=P+Q\cdot {\frac {\Delta P}{\Delta Q}}=P+P\cdot {\frac {Q}{P}}\cdot {\frac {\Delta P}{\Delta Q}}=P+{\frac {P}{\text{PED}}}} , where PED {\displaystyle {\text{PED}}}

2331-443: The firm's total profit is said to be maximized. If the marginal revenue is greater than the marginal cost ( MR > MC {\displaystyle {\text{MR}}>{\text{MC}}} ), then its total profit is not maximized, because the firm can produce additional units to earn additional profit. In other words, in this case, it is in the "rational" interest of the firm to increase its output level until its total profit

2394-658: The industrial north under the Sheffield Rules. Working class, industrial cities all over the U.K. began forming their own Football Associations in the late 1800s, from the Scottish Football Association in 1873 to Lancashire FA in 1878. Teams still in existence began popping up, some with the help of the Church; for example, Aston Villa was founded in 1874, Wolverhampton Wanderers in 1877, Bolton Wanderers in 1874 and Everton in 1878. Due to

2457-478: The input markets: in a perfectly competitive input market the firm's cost of the input is simply the amount purchased for use in production times the market-determined unit input cost, whereas a monopsonist ’s input price per unit is higher for higher amounts of the input purchased. The principal difference between short run and long run profit maximization is that in the long run the quantities of all inputs, including physical capital , are choice variables, while in

2520-496: The intent of profit maximization , as its sports outcomes are considered more important than its financial outcomes by its ownership. In addition, financial regulations as, for example, UEFA Financial Fair Play may also limit what a club is and is not allowed to do with their spending and capital holdings. The capital structure of a football club most closely resembles that of a nonprofit corporation , although it may still be profitable per se to its investors. A practical example

2583-421: The level that maximizes revenue. In other words, the profit-maximizing quantity and price can be determined by setting marginal revenue equal to zero, which occurs at the maximal level of output. Marginal revenue equals zero when the total revenue curve has reached its maximum value. An example would be a scheduled airline flight. The marginal costs of flying one more passenger on the flight are negligible until all

San Pedro Claver - Misplaced Pages Continue

2646-454: The long run, a firm will theoretically have zero expected profits under the competitive equilibrium. The market should adjust to clear any profits if there is perfect competition. In situations where there are non-zero profits, we should expect to see either some form of long run disequilibrium or non-competitive conditions, such as barriers to entry, where there is not perfect competition between firms. In addition to using methods to determine

2709-555: The maximum profit (the maximum value of TR − TC {\displaystyle {\text{TR}}-{\text{TC}}} ) to maximize profit. But when the total cost increases, it does not mean maximizing profit Will change, because the increase in total cost does not necessarily change the marginal cost. If the marginal cost remains the same, the enterprise can still produce to the unit of ( MR = MC = Price {\displaystyle {\text{MR}}={\text{MC}}={\text{Price}}} ) to maximize profit. In

2772-494: The maximum profit in pursuit of higher market share . Because price increases maximize profits in the short term, they will attract more companies to enter the market. Many companies try to minimize costs by shifting production to foreign locations with cheap labor (e.g. Nike, Inc. ). However, moving the production line to a foreign location may cause unnecessary transportation costs. Close market locations for producing and selling products can improve demand optimization, but when

2835-571: The midpoints between the old and new values of price and quantity respectively. The marginal revenue from an incremental unit of output has two parts: first, the revenue the firm gains from selling the additional units or, giving the term P Δ Q {\displaystyle P\Delta Q} . The additional units are called the marginal units. Producing one extra unit and selling it at price P {\displaystyle P} brings in revenue of P {\displaystyle P} . Moreover, one must consider "the revenue

2898-644: The optimal markup rule is: In other words, the rule is that the size of the markup of price over the marginal cost is inversely related to the absolute value of the price elasticity of demand for the good. The optimal markup rule also implies that a non-competitive firm will produce on the elastic region of its market demand curve. Marginal cost is positive. The term P E D 1 + PED {\displaystyle {\frac {PED}{1+{\text{PED}}}}} would be positive so P > 0 {\displaystyle P>0} only if PED {\displaystyle {\text{PED}}}

2961-453: The optimum quantity in the first diagram. If the firm is a monopolist , the marginal revenue curve would have a negative slope as shown in the next graph, because it would be based on the downward-sloping market demand curve. The optimal output, shown in the graph as Q m {\displaystyle Q_{m}} , is the level of output at which marginal cost equals marginal revenue. The price that induces that quantity of output

3024-462: The organization, either as part of the club, or as an affiliate to the club. The more prestigious football clubs often have a combination of their own youth academies, as well as external sources of talent (pools) through affiliated clubs as well as the arrangement of youth tournaments. An association football club normally has a designated stadium as their home ground, where the club plays its home games, which normally make up about half of fixtures for

3087-420: The output level. Third, since the first order condition for the optimization equates marginal revenue and marginal cost , if marginal revenue ( MR {\displaystyle {\text{MR}}} ) and marginal cost ( MC {\displaystyle {\text{MC}}} ) functions in terms of output are directly available one can equate these, using either equations or a graph. Fourth, rather than

3150-604: The output market, the price to sell the product at can be read off the demand curve at the firm's optimal quantity of output . This optimal quantity of output is the quantity at which marginal revenue equals marginal cost . An equivalent perspective relies on the relationship that, for each unit sold, marginal profit ( M π {\displaystyle {\text{M}}\pi } ) equals marginal revenue ( MR {\displaystyle {\text{MR}}} ) minus marginal cost ( MC {\displaystyle {\text{MC}}} ). Then, if marginal revenue

3213-461: The power of a firm in the market, a firm dominating a market is very common, and too much power often becomes the motive for non-Hong behavior. Predatory pricing , tying , price gouging and other behaviors are reflecting the crisis of excessive power of monopolists in the market. In an attempt to prevent businesses from abusing their power to maximize their own profits, governments often intervene to stop them in their tracks. A major example of this

SECTION 50

#1732797379343

3276-434: The preceding item). To obtain the profit maximizing output quantity, we start by recognizing that profit is equal to total revenue ( TR {\displaystyle {\text{TR}}} ) minus total cost ( TC {\displaystyle {\text{TC}}} ). Given a table of costs and revenues at each quantity, we can either compute equations or plot the data directly on a graph. The profit-maximizing output

3339-417: The price increase leads to a small decline in demand, the company can increase the price as much as possible before the demand becomes elastic. Generally, it is difficult to change the impact of the price according to the demand, because the demand may occur due to many other factors besides the price. The company may also have other goals and considerations. For example, companies may choose to earn less than

3402-571: The production cost is much higher, it is not a good choice. A firm maximizes profit by operating where marginal revenue equals marginal cost. This is stipulated under neoclassical theory, in which a firm maximizes profit in order to determine a level of output and inputs, which provides the price equals marginal cost condition. In the short run, a change in fixed costs has no effect on the profit maximizing output or price. The firm merely treats short term fixed costs as sunk costs and continues to operate as before. This can be confirmed graphically. Using

3465-430: The production function. The first order condition for each input equates the marginal revenue product of the input (the increment to revenue from selling the product caused by an increment to the amount of the input used) to the marginal cost of the input. For a firm in a perfectly competitive market for its output, the revenue function will simply equal the market price times the quantity produced and sold, whereas for

3528-423: The profit maximisation level of output: As such, the profit maximisation level of output is marginal revenue p i {\displaystyle p_{i}} equating to marginal cost c i {\displaystyle c_{i}} . In an environment that is competitive but not perfectly so, more complicated profit maximization solutions involve the use of game theory . In some cases

3591-443: The same. This point can also be illustrated using the diagram for the marginal revenue–marginal cost perspective. A change in fixed cost would have no effect on the position or shape of these curves. In simple terms, although profit is related to total cost, Profit = TR − TC {\displaystyle {\text{Profit}}={\text{TR}}-{\text{TC}}} , the enterprise can maximize profit by producing to

3654-434: The scope and popularity of the sport, professional football clubs carry a significant commercial existence, with fans expecting personal service and interactivity, and external stakeholders viewing the field of professional football as a source of significant business advantages. For this reason, expensive player transfers have become an expectable part of the sport. Awards are also handed out to managers or coaches on

3717-565: The seats are filled. The airline would maximize profit by filling all the seats. In the real world, it is not easy to achieve profit maximization. The company must accurately know the marginal income and the marginal cost of the last commodity sold because of MR . The price elasticity of demand for goods depends on the response of other companies. When it is the only company raising prices, demand will be elastic. If one family raises prices and others follow, demand may be inelastic. Companies can seek to maximize profits through estimation. When

3780-493: The short run the amount of capital is predetermined by past investment decisions. In either case, there are inputs of labor and raw materials . Any costs incurred by a firm may be classified into two groups: fixed costs and variable costs . Fixed costs, which occur only in the short run, are incurred by the business at any level of output, including zero output. These may include equipment maintenance, rent, wages of employees whose numbers cannot be increased or decreased in

3843-403: The short run, and general upkeep. Variable costs change with the level of output, increasing as more product is generated. Materials consumed during production often have the largest impact on this category, which also includes the wages of employees who can be hired and laid off in the short run span of time under consideration. Fixed cost and variable cost, combined, equal total cost . Revenue

SECTION 60

#1732797379343

3906-435: The variable input? To maximize profit the firm should increase usage of the input "up to the point where the input's marginal revenue product equals its marginal costs". Mathematically, the profit-maximizing rule is MRP L = MC L {\displaystyle {\text{MRP}}_{L}={\text{MC}}_{L}} , where the subscript L {\displaystyle _{L}} refers to

3969-476: The world on amateur, semi-professional or professional levels of the game. They can be owned by members as well as business entities. Football clubs have been in practice since the 19th century, with the existence of clubs dating back to the 1850s . During the early 1860s, there were increasing attempts in England to unify and reconcile the various football games that were played in the public schools as well in

#342657