EGT1 Essay Example | Topics and Well Written Essays - 500 words

EGT1 - Essay Example From this discussion it is clear that the total profit increases when marginal profit is positive i.e. when marginal revenue is greater than marginal cost. Similarly, the total profit decreases when marginal profit is negative i.e. marginal revenue is less as compared to marginal cost. Maximum total profit is achieved when marginal profit becomes zero. At this point, marginal revenue is equal to marginal cost. A further increase in output leads to a negative marginal profit or a marginal loss i.e. the total profit starts decreasing. Thus, maximum profit is achieved at a point where marginal profit is equal to marginal revenue. Figure 1 shows the graphs for Total Revenue, Total Cost, Marginal Revenue, Marginal Cost and Total Profit. The profit is maximized at output = q*.This paper highlights that if marginal revenue of a firm exceeds the marginal cost, a firm is in a healthy position. Its marginal profit is positive. The firm would hence need to take steps to increase the level of ou tput with the current resources provided the demand for the same exists. Additional labour may be required increasing cost but additional capital expenditure is generally not made in the short run. The firm may also take actions to boost market demand. These may include marketing and promotional activities.  If the marginal revenue of a firm is less than marginal cost, the firm is operating at sub-optimal levels. The firm needs to analyze whether the output produced is actually required. If no, the output levels are decreased.

Project management Essay Example | Topics and Well Written Essays - 2000 words - 1

Project management - Essay Example Each project undertaken is unique in terms of its timeline, cost, objectives, roles and responsibilities of all stakeholders and participants, issues and constrains and this requires the use of the right approach or methodology. The main challenges of project management are satisfactory achievement of goals and objectives and overcoming all project constrains. These constrains include time, project scope and budget. There is also a challenge of integrating and allocating necessary inputs. This means that a successful completion of a project and the attainment of its goals and objectives requires the use of the right approach or methodology and the utilization of appropriate project management tools and techniques. According to Ireland (2006), project management techniques refers to the ways in which we communicate, gather information and get things done in the most effective and efficient ways. Project management tools are helpful in the efficient organization and management of a pro ject. Generally, the project management tools and techniques should have an overall effect of ensuring that the particular project does not over run and that it operates within its allocated budget. They are also important for the quick spotting of delays so that necessary steps are taken to rectify them (Ireland 2006). Wysocki (2007) defines project management methodology as a set of practices and processes that are repeatedly carried out throughout the project in order to deliver the expected outcomes. The chosen methodology gives a clear process of managing the undertaken project. After customizing to the project environment, the project methodology directs on what should be done, how, in what order and by when. A project methodology can therefore be used create a project roadmap, control change and scope, monitor quality, time and cost, manage staff and supplies, and minimize project risks and issues. Popular project management tools, techniques and methodology in market Project management tools The most popular project management tools in the market are Gantt chart, PERT chart, Work Breakdown Structure (WBS), Logic Network and Product Breakdown Structure (PBS). A Gantt chart is a chart that illustrates the schedule of a project. The chart tracks tasks across time hence it indicates the starting and finishing dates of the projects’ terminal elements (Wallace and Gantt 1922). Some Gantt charts are able to illustrate precedence network or dependency relationships between various project activities. Most importantly, it is possible to use a Gantt chart to show a projects current schedule status. This is done using a vertical TODAY line and percent-complete shadings. A Gantt chart is important in tool for showing resources, tasks, phases and milestones required as part of a project. The Program Evaluation and Review Technique (PERT) chart is a project management tool used for the analysis of all tasks involved in the completion of a particular project. This mainly includes identifying the time required to complete each project task and the total project. According to Malcolm et al (1959), a PERT chart gives a graphic representation of a project as a network diagram composed of numbered nodes linked by directional lines. The numbered codes represent project events or milestones while the directional lines represent proje