COST CONCEPT.pptx
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The document defines different types of costs including total fixed cost, total variable cost, total cost, average fixed cost, average variable cost, average cost, and marginal cost. It provides examples of costs that are fixed (rent, insurance, salaries) versus variable (direct labor, energy, raw materials). It also discusses cost estimation and different models used for cost estimation like the learning curve model, segmenting model, per unit model, cost index model, power sizing model, and break even quantity model.
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The document discusses various concepts related to cost. It defines cost as a sacrifice or foregone opportunity measured in monetary terms. It then discusses different types of costs such as fixed costs, variable costs, sunk costs, explicit costs, implicit costs, and others. It also discusses cost determination factors and different cost curves and functions in the short run and long run, including total cost, average cost, and marginal cost curves. Finally, it discusses costs for multi-product firms and joint products.
Cost of Production (10-1-22)-student notes (2).pdf
Okay, let me break this down step-by-step:
* Explicit costs:
** Labor costs: $12,000
** Rent: $5,000
** Materials: $20,000
* Total explicit costs = $12,000 + $5,000 + $20,000 = $37,000
* Implicit costs:
** Opportunity cost of capital = $4,000
** Mooez's salary as potter = $15,000
** Value of Mooez's entrepreneurial talents = $3,000
* Total implicit costs = $4,000 + $15,000 + $3,000 = $22,000
* Total costs
Cost analysis
This document discusses cost analysis and various cost concepts. It begins by defining cost analysis and its importance in business decision making. It then outlines several types of costs including: opportunity cost, economic cost, accounting cost, private and social costs, incremental and sunk costs, direct and indirect costs, average, marginal and total costs. It also discusses cost-output relationships in the short-run and long-run, factors determining costs, and break-even analysis. The key purpose is to provide an overview of different cost concepts and cost-output relationships that are important for business analysis and decision making.
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here is the ppt on the topic for cost concept and its related outputs
consist of graphs and some info pics.
ECONOMICS COST CONCEPT
This document discusses cost concepts and types of costs. It defines explicit costs as actual money expenditures paid to outsiders, and implicit costs as the estimated value of owner-supplied inputs including normal profit. Cost is a function of output, and types of costs include total fixed costs, total variable costs, total costs, average fixed costs, average variable costs, average costs, and marginal costs. Long-run costs are all variable as all factors are variable. Economies of scale provide cost advantages from expansion, including pecuniary and real economies, while internal economies come from changes within the firm and external economies from changes outside the firm like government policies.
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The document discusses cost and revenue functions in the short run and long run. It defines key concepts like total, average, and marginal costs. Total costs are divided into total fixed and total variable costs. Average costs include average fixed cost, average variable cost, and average total cost. Marginal cost is the change in total cost from producing an additional unit. Similarly, the document defines total, average, and marginal revenue. It explains how costs and revenues behave in the short run versus the long run.
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The document discusses various cost concepts in economics including:
- Opportunity cost is the next best alternative use of a resource.
- Accounting costs include explicit payments, while economic costs also include implicit opportunity costs.
- Total, average, and marginal costs are defined for both the short-run and long-run. In the short-run some costs are fixed while in the long-run all costs are variable.
- Cost curves like AVC, ATC, and MC are U-shaped based on the law of diminishing returns in production. Minimum efficient scale is where long-run average costs are minimized.
Theory of costs
The document discusses different types of costs involved in production including money costs, real costs, opportunity costs, total costs, average costs, and marginal costs. It defines these terms and explains how they are calculated. For example, total cost is the sum of fixed and variable costs, average cost is total cost divided by output, and marginal cost is the change in total cost from producing one more unit. The document also discusses short-run and long-run cost curves including how average and marginal costs are related in both the short-run and long-run.
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Unit 2 c 2
The document discusses various concepts related to cost. It defines cost as a sacrifice or foregone opportunity measured in monetary terms. It then discusses different types of costs such as fixed costs, variable costs, sunk costs, explicit costs, implicit costs, and others. It also discusses cost determination factors and different cost curves and functions in the short run and long run, including total cost, average cost, and marginal cost curves. Finally, it discusses costs for multi-product firms and joint products.
Cost of Production (10-1-22)-student notes (2).pdf
Okay, let me break this down step-by-step:
* Explicit costs:
** Labor costs: $12,000
** Rent: $5,000
** Materials: $20,000
* Total explicit costs = $12,000 + $5,000 + $20,000 = $37,000
* Implicit costs:
** Opportunity cost of capital = $4,000
** Mooez's salary as potter = $15,000
** Value of Mooez's entrepreneurial talents = $3,000
* Total implicit costs = $4,000 + $15,000 + $3,000 = $22,000
* Total costs
Cost analysis
This document discusses cost analysis and various cost concepts. It begins by defining cost analysis and its importance in business decision making. It then outlines several types of costs including: opportunity cost, economic cost, accounting cost, private and social costs, incremental and sunk costs, direct and indirect costs, average, marginal and total costs. It also discusses cost-output relationships in the short-run and long-run, factors determining costs, and break-even analysis. The key purpose is to provide an overview of different cost concepts and cost-output relationships that are important for business analysis and decision making.
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here is the ppt on the topic for cost concept and its related outputs
consist of graphs and some info pics.
ECONOMICS COST CONCEPT
This document discusses cost concepts and types of costs. It defines explicit costs as actual money expenditures paid to outsiders, and implicit costs as the estimated value of owner-supplied inputs including normal profit. Cost is a function of output, and types of costs include total fixed costs, total variable costs, total costs, average fixed costs, average variable costs, average costs, and marginal costs. Long-run costs are all variable as all factors are variable. Economies of scale provide cost advantages from expansion, including pecuniary and real economies, while internal economies come from changes within the firm and external economies from changes outside the firm like government policies.
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The document discusses cost and revenue functions in the short run and long run. It defines key concepts like total, average, and marginal costs. Total costs are divided into total fixed and total variable costs. Average costs include average fixed cost, average variable cost, and average total cost. Marginal cost is the change in total cost from producing an additional unit. Similarly, the document defines total, average, and marginal revenue. It explains how costs and revenues behave in the short run versus the long run.
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The document discusses various cost concepts in economics including:
- Opportunity cost is the next best alternative use of a resource.
- Accounting costs include explicit payments, while economic costs also include implicit opportunity costs.
- Total, average, and marginal costs are defined for both the short-run and long-run. In the short-run some costs are fixed while in the long-run all costs are variable.
- Cost curves like AVC, ATC, and MC are U-shaped based on the law of diminishing returns in production. Minimum efficient scale is where long-run average costs are minimized.
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The document discusses different types of costs involved in production including money costs, real costs, opportunity costs, total costs, average costs, and marginal costs. It defines these terms and explains how they are calculated. For example, total cost is the sum of fixed and variable costs, average cost is total cost divided by output, and marginal cost is the change in total cost from producing one more unit. The document also discusses short-run and long-run cost curves including how average and marginal costs are related in both the short-run and long-run.
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02 COST CONCEPT AND ITS TYPES
03 BRIEF OVERVIEW OF THE TYPES
04 PRODUCTION COSTS
05 DETERMINANTS OF COSTS
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The document discusses different types of costs including:
1. Accounting costs include expenses incurred during production adjusted for depreciation, while economic costs include explicit payments to factors of production as well as implicit opportunity costs.
2. In the short-run, costs are classified as fixed, variable, total, average fixed, average variable, and marginal based on their relationship to changing output levels.
3. In the long-run, all factors are variable and long-run total, average, and marginal cost curves are defined based on minimum cost production at different output scales.
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This document defines and explains different types of costs including fixed costs, variable costs, total costs, average costs, and marginal costs. It discusses total fixed costs, average fixed costs, total variable costs, average variable costs, total costs, average total costs, and marginal costs. Graphs are included showing typical total cost, average cost, and marginal cost curves. The concepts of economies of scale and diseconomies of scale are also summarized along with internal and external economies.
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This document discusses different types of costs in production including:
1) Total costs include all costs of production and increase as output increases.
2) Marginal costs refer to the change in total costs from producing one additional unit of output.
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Linkedin:https://www.linkedin.com/in/archit-aditya-557958128
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Blog:https://astarfuturistic.blogspot.com
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This document discusses cost concepts including the theory of costs, types of costs, and cost functions. It explains that a firm's total costs are made up of fixed costs and variable costs. Fixed costs do not change with output while variable costs do change with output. It also discusses the relationships between total cost, average cost, and marginal cost. Specifically, it explains that as output increases, average and marginal costs first decrease then increase, with marginal cost rising more quickly than average cost. The document also differentiates between short-run and long-run cost functions and how a firm's costs change in each time period.
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Dheeraj Rawal presented on cost-output relationships and methods for estimating cost functions. There are two main types of cost estimation: short-run and long-run. Short-run estimation looks at costs when some inputs are fixed, while long-run allows all inputs to vary. Common short-run cost curves include total, average, and marginal cost curves. Long-run estimation derives a minimum cost curve from multiple short-run curves. Methods for estimating cost functions include accounting analysis, high-low analysis, scatterplots, and regression analysis. Challenges include accounting for time periods and cost adjustments over time.
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The document discusses the costs of production for firms. It defines different types of costs including fixed costs, variable costs, total costs, average costs, and marginal costs. Fixed costs remain constant regardless of the amount of output, while variable costs change with output. Total cost is the sum of fixed and variable costs. The document also discusses how cost curves like total cost, average cost, and marginal cost shift when costs or technology change.
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The document discusses different types of costs including:
1. Accounting costs include expenses incurred during production adjusted for depreciation, while economic costs include explicit payments to factors of production as well as implicit opportunity costs.
2. In the short-run, costs are classified as fixed, variable, total, average fixed, average variable, and marginal based on their relationship to changing output levels.
3. In the long-run, all factors are variable and long-run total, average, and marginal cost curves are defined based on minimum cost production at different output scales.
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This document defines and explains different types of costs including fixed costs, variable costs, total costs, average costs, and marginal costs. It discusses total fixed costs, average fixed costs, total variable costs, average variable costs, total costs, average total costs, and marginal costs. Graphs are included showing typical total cost, average cost, and marginal cost curves. The concepts of economies of scale and diseconomies of scale are also summarized along with internal and external economies.
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This document discusses key concepts related to business costs including:
1. It defines economic costs, accounting costs, and sunk costs.
2. It explains the differences between short-run and long-run costs, and how total, average, and marginal costs are calculated in each time period.
3. It provides examples of cost schedules and diagrams cost curves, discussing their characteristics and relationships.
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- In the short-run, at least one input is fixed, so fixed costs remain constant while variable costs change with output. In the long-run, all inputs can be varied.
- Total cost is the sum of total fixed costs, which are constant, and total variable costs, which vary with output. Average and marginal costs are also important concepts for understanding cost behavior.
Cost function Managerial Economics
The document defines short-run and long-run costs, and explains the relationships between total, fixed, and variable costs. It also defines average and marginal costs. Specifically, it states that in the short-run, output can be increased or decreased while fixed costs remain unchanged. Total cost equals fixed plus variable cost. Average and marginal cost curves are also discussed, with average cost initially declining and then increasing due to diminishing returns.
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This document discusses different types of costs related to production. It defines money cost, nominal cost, real cost, opportunity cost, implicit cost, explicit cost, accounting cost, social cost, and entrepreneur's cost. It also covers classification of costs, elements of costs, short-run costs including fixed, variable, total, average and marginal costs. Finally, it discusses long-run cost curves including long-run average cost and long-run marginal cost curves.
ECONOMICS COST CONCEPT
This document defines key concepts related to cost, including:
- Explicit costs refer to actual money spent on inputs, while implicit costs refer to the estimated value of owner-supplied inputs.
- Cost function studies the relationship between input costs and output levels.
- Short-run costs include total, fixed, and variable costs. Total cost equals fixed plus variable cost. Variable costs change with output while fixed costs do not.
- Marginal cost refers to the change in total cost from producing one additional unit of output.
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The document discusses cost theory concepts including opportunity costs, explicit and implicit costs, short-run and long-run costs, fixed and variable costs, total cost, average cost, and marginal cost. It explains how average, marginal, and total costs are related and how their curves are shaped. Specifically, it summarizes that marginal cost and short-run average cost curves slope upward due to diminishing returns, while the long-run average cost curve is U-shaped as economies of scale initially lower costs but diseconomies later raise them. The envelope relationship shows that short-run average costs are always above the minimum long-run average cost.
Cost oncept
The document provides an overview of cost concepts that will be covered in Chapter 8. It defines different types of costs including accounting costs, opportunity costs, fixed costs, and variable costs. It explains the concepts of average cost, marginal cost, and their relationships. It discusses costs in the short run versus the long run and how all costs are variable in the long run. It also covers costs for multi-product firms and the allocation of common costs for joint products. Finally, it introduces the linkages between costs, revenue, and output through concepts like total revenue, average revenue, and marginal revenue.
Cost market & competitive analysis
This document contains an analysis of costs, market forces, and competitors for PGMAX (2014-2015). It includes sections on cost concepts, cost functions, short-run and long-run costs, economies of scale, and cost-volume-profit analysis. Market and competitor analyses cover market size, share, trends, Porter's Five Forces model, and assessing strengths and weaknesses of competitors. Break-even analysis calculations are shown for a example company.
1 Costs of Production
This document discusses different types of costs in production including:
1) Total costs include all costs of production and increase as output increases.
2) Marginal costs refer to the change in total costs from producing one additional unit of output.
3) In the short run, average costs first decrease as efficiency improves but eventually increase as higher-cost production methods are utilized.
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- 2. COSTCONCEPT- IT REFERS TO THE AMOUNT OF PAYMENT MADE TO ACQUIRE ANY GOODS AND SERVICES. TYPESOF COST: TOTAL FIXED COST (TFC) TOTAL VARIABLE COST (TVC) TOTAL COST (TC) AVERAGE FIXED COST (AFC) AVERAGE VARIABLE COST (AVC) AVERAGE COST (AC) MARGINAL COST (MC)
- 3. • TOTAL FIXED COST – IT REFERS TO THE COST WHICH DOES NOT CHANGE WITH CHANGE IN LEVEL OF INPUT. EXAMPLE: RENT, INSURANCE, SALARIES, ETC. • TOTAL VARIABLE COST – IT REFERS TO THE COST WHICH VARY DIRECTLY TO THE LEVEL OF INPUT. EXAMPLE- DIRECT LABOUR, ENERGY AND RAW MATERIAL COST. • TOTAL COST – THE SUM OF ALL COST INCURRED BY A FIRM IN A PRODUCING A CERTAIN LEVEL OF OUTPUT. • AVERAGE FIXED COST – IT REFERS TO PERT UNIT OF TOTAL FIXED COST. • AVERAGE VARIABLE COST – IT REFERS TO PER UNIT OF TOTAL VARIABLE COST. • AVERAGE COST – IT REFERS TO PER UNIT TOTAL COST OF PRODUCTION . • MARGINAL COST – IT REFERS TO ADDITION TO TOTAL COST EHEN ONE MORE UNIT OF OUTPUT IS PRODUCED.
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