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Ludwig Maximilian University Marginal Contribution Margin Discussion

 

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Assigned Readings:

Chapter 5. Investment Decisions: Look Ahead and Reason Back.

Chapter 6. Simple Pricing.

Chapter 7. Economies of Scale and Scope.

Initial Postings: Read and reflect on the assigned readings for the week. Then post what you thought was the most important concept(s), method(s), term(s), and/or any other thing that you felt was worthy of your understanding in each assigned textbook chapter.Your initial post should be based upon the assigned reading for the week, so the textbook should be a source listed in your reference section and cited within the body of the text. Other sources are not required but feel free to use them if they aid in your discussion.

Also, provide a graduate-level response to each of the following questions:

  1. Describe an investment decision you or your company has made. Compute the opportunity costs and benefits of the decision. Did your company make the right decision? If not, what would you do differently? Compute the NPV of the investment.
  2. The book is Froeb, L. M., McCann, B. T., Shor, M., & Ward, M. R. (2019). Managerial economics. Cengage Learning Asia Pte Ltd.