Costs
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This document defines and explains different types of costs including fixed costs, variable costs, average costs, and marginal costs. It provides examples of fixed costs like rent and salaries. Variable costs vary with output and include raw materials. Average costs are calculated by dividing total costs by units produced. Marginal cost is the change in total cost from producing one additional unit. Cost curves can be used to show the relationship between these different cost measures.
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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.
Economic Costs | Eonomics
Economic Costs refer to the sum of opportunity costs and accounting costs. It is the cost of choosing one economic activity over another. This means when we look at economic costs, it includes all the costs incurred to carry out a particular activity that have to be paid and the opportunity cost or the benefits from the next best alternative which had to be forgone in order to carry out this activity. Copy the link given below and paste it in new browser window to get more information on Economic Costs:- http://www.transtutors.com/homework-help/economics/economics-costs.aspx
Short run cost theory
Short-run cost theory can be summarized in 3 sentences:
Fixed costs are incurred regardless of output while variable costs change with output. Total costs are the sum of fixed and variable costs. Average total costs initially fall as average fixed costs decline and marginal costs are low, but eventually rise as marginal costs increase due to diminishing returns.
Economics
presentation prepared by 2011 humanities batch under the leadership of mathew j. vettickal
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Cost.1
The document discusses the costs of production for a firm. It defines fixed costs as costs that do not vary with output, variable costs as costs that vary with output, and total costs as the sum of fixed and variable costs. Marginal cost is defined as the change in total cost from producing one additional unit of output. In the short run, costs are classified as either fixed or variable, but in the long run most costs can become variable. Cost curves like average total cost, average variable cost, and marginal cost are discussed and how they relate to costs and production levels.
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This document discusses different types of costs involved in production. It defines fixed costs as expenses that cannot be changed in the short run, like rent and insurance, and variable costs as expenses that vary with output, such as raw materials and wages. Total cost is the sum of total fixed and total variable costs. As output increases, average fixed cost falls while average variable cost initially falls then rises, resulting in a U-shaped average total cost curve. Marginal cost is the change in total cost from producing an additional unit of output. The point where marginal cost equals average cost minimizes average total cost. Controlling costs is essential for business success.
COST
This document defines and explains various cost concepts including: total fixed costs, average fixed costs, total variable costs, average variable costs, total costs, average total costs, and marginal costs. It discusses the differences between fixed and variable costs. Typical total, average, and marginal cost curves are shown and explained. The document also covers economies and diseconomies of scale, and internal and external economies.
Types of cost
This presentation defines different types of costs and explains them. There are opportunity costs versus actual costs, direct versus indirect costs, fixed versus variable costs, and average versus marginal costs. It also discusses historical costs versus replacement costs, explicit versus implicit costs, total costs, and the managerial uses of understanding different cost types.
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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.
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Short-run cost theory can be summarized in 3 sentences:
Fixed costs are incurred regardless of output while variable costs change with output. Total costs are the sum of fixed and variable costs. Average total costs initially fall as average fixed costs decline and marginal costs are low, but eventually rise as marginal costs increase due to diminishing returns.
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The document discusses the costs of production for a firm. It defines fixed costs as costs that do not vary with output, variable costs as costs that vary with output, and total costs as the sum of fixed and variable costs. Marginal cost is defined as the change in total cost from producing one additional unit of output. In the short run, costs are classified as either fixed or variable, but in the long run most costs can become variable. Cost curves like average total cost, average variable cost, and marginal cost are discussed and how they relate to costs and production levels.
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This document discusses different types of costs involved in production. It defines fixed costs as expenses that cannot be changed in the short run, like rent and insurance, and variable costs as expenses that vary with output, such as raw materials and wages. Total cost is the sum of total fixed and total variable costs. As output increases, average fixed cost falls while average variable cost initially falls then rises, resulting in a U-shaped average total cost curve. Marginal cost is the change in total cost from producing an additional unit of output. The point where marginal cost equals average cost minimizes average total cost. Controlling costs is essential for business success.
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This presentation defines different types of costs and explains them. There are opportunity costs versus actual costs, direct versus indirect costs, fixed versus variable costs, and average versus marginal costs. It also discusses historical costs versus replacement costs, explicit versus implicit costs, total costs, and the managerial uses of understanding different cost types.
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Costs, revenue and profit
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- In the short run, firms have fixed costs that do not depend on output level. They also have variable costs that vary with output. Total costs are the sum of fixed and variable costs.
- Marginal cost is the change in total cost from producing one additional unit. It reflects changes in variable costs. Marginal cost typically rises as output increases in the short run due to diminishing returns.
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2) By function (production, administration, selling/distribution)
3) Direct vs indirect costs
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5) By controllability (controllable, uncontrollable)
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Elasticity of Demand (Filipino)
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Ang elastisidad ng demand ay ang bahagdan na pagbabago sa dami ng demand ayon sa pagbabago ng presyo.
Uri ng Elastisidad ng Demand:
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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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Fixed factors are inputs that cannot be adjusted in the short run, like capital or land, while variable factors like labor and materials can be adjusted. In the short run with at least one fixed factor, firms experience diminishing returns from adding more of a variable factor. In the long run, all factors can be adjusted, but firms are constrained by technology. Economies of scale can result in lower long-run costs as output increases due to factors like specialization and bulk purchasing. Firms aim to earn profits by setting price and output levels where total revenue exceeds total costs.
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- In the short run, firms have fixed costs that do not depend on output level. They also have variable costs that vary with output. Total costs are the sum of fixed and variable costs.
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The document discusses cost concepts and their application. It defines different types of costs such as fixed costs, variable costs, opportunity costs, sunk costs, explicit costs, and implicit costs. It also discusses total cost, which is the sum of fixed and variable costs. The total cost equation and linear cost equation are presented. Examples are provided to illustrate calculating total production costs, break-even points, and profits using the total cost equation. Location selection for facilities is also discussed, with factors like proximity to markets and suppliers, labor availability, and costs being considered in a break-even analysis.
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This document discusses various cost concepts that are relevant for business operations and decision making. It groups the concepts into accounting cost concepts and analytical cost concepts. Some key accounting cost concepts discussed include opportunity cost vs actual cost, business cost vs full cost, explicit vs implicit cost, and out-of-pocket vs book cost. Analytical cost concepts discussed include fixed vs variable cost, total/average/marginal cost, short-run vs long-run cost, incremental vs sunk cost, historical vs replacement cost, and private vs social cost.
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This document discusses various types of cost accounting. It defines cost accounting as recording, controlling, estimating, and reporting costs. It then describes several ways that costs can be classified or grouped:
1) By nature or element (material, labor, expenses)
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4) By variability (variable, fixed, semi-variable)
5) By controllability (controllable, uncontrollable)
6) By normality (normal, abnormal)
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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.
Cost curves by Neeraj Bhandari ( Surkhet.Nepal )
This document discusses cost analysis concepts including short run and long run cost curves. It defines different types of costs such as total fixed costs, total variable costs, total costs, average fixed costs, average variable costs, average total costs, and marginal costs. It provides examples of fixed costs and variable costs. It also describes typical total cost, average cost, and marginal cost curves.
Lecture 8
The document discusses different concepts of cost including nominal cost, real cost, money cost, and opportunity cost. It also explains the differences between short-run and long-run costs, and how average, marginal, total, fixed, and variable costs are calculated and relate to each other. Finally, it addresses the shapes of long-run average and marginal cost curves and why they change with scale of production.
Cost concepts
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.
Me 6
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.
COST ANALYSIS (Brief overview)
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Detailed Presentation on cost analysis including:
01 INTRODUCTION TO COST ANALYSIS
02 COST CONCEPT AND ITS TYPES
03 BRIEF OVERVIEW OF THE TYPES
04 PRODUCTION COSTS
05 DETERMINANTS OF COSTS
By: Archit Aditya
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Cost CONCEPT
This document discusses different cost concepts including fixed costs, variable costs, total costs, average costs, and marginal costs. It defines each type of cost and provides examples. Fixed costs remain constant regardless of production levels, while variable costs change with output. Total costs are the sum of fixed and variable costs. Average costs are total costs divided by output. Marginal cost is the change in total cost from a one-unit change in output. The document also discusses typical total, average, and marginal cost curves and how they relate. It concludes by covering economies and diseconomies of scale.
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Introduction to objective, scope and outcome the subject
Chapter 2
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Chapter 3
Surveying: Object Principles & Types of Surveying; Site Plans, Plans & Maps; Scales & Unit of different Measurements.
Linear Measurements: Instruments used. Linear Measurement by Tape, Ranging out Survey Lines and overcoming Obstructions; Measurements on sloping ground; Tape corrections, conventional symbols. Angular Measurements: Instruments used; Introduction to Compass Surveying, Bearings and Longitude & Latitude of a Line, Introduction to total station.
Levelling: Instrument used Object of levelling, Methods of levelling in brief, and Contour maps.
Chapter 4
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Chapter 5
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Chapter 6
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Water Pollution: Water Quality standards, Introduction to Treatment & Disposal of Waste Water. Reuse and Saving of Water, Rain Water Harvesting. Solid Waste Management: Classification of Solid Waste, Collection, Transportation and Disposal of Solid. Recycling of Solid Waste: Energy Recovery, Sanitary Landfill, On-Site Sanitation. Air & Noise Pollution: Primary and Secondary air pollutants, Harmful effects of Air Pollution, Control of Air Pollution. . Noise Pollution Harmful Effects of noise pollution, control of noise pollution, Global warming & Climate Change, Ozone depletion, Greenhouse effect
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2. Satheesh Gopi, Basic Civil Engineering, Pearson Publishers.
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Costs
- 1. Costs Total, Fixed, Variable, Average and Marginal ECON3
- 2. Fixed Costs (FC) • ‘A cost which is independent of output in the short run’ • This can include Rent on a Premises – In the short run this has to be paid no matter what so is seen as fixed – In the long run the firm may close so rent doesn’t have to be paid, so is then variable. • They are costs which need to be paid even if production is zero. • Fixed Costs can include: – Salaries of Permanent Employees – Costs of Machinery – Depreciation
- 3. Variable Costs (VC) • ‘A cost which is related to output produced in the short run’ • These vary directly with output • An increase in output will require more raw materials so this cost is directly linked to output Semi Variable Costs • Costs which have both a fixed element and a variable one • They vary with output but not proportionately • E.g. you will use a telephone if you produce more, but not twice as much if you produce twice as much
- 4. Average Costs (AC) • 3 Types – Average Fixed Costs (AFC) • Found by dividing the total fixed costs by the number of units produced – Average Variable Costs (AVC) • Found by dividing the total variable costs by the number of units produced – Average Total Cost (ATC) • Found by dividing the total costs of a firm by the number of units produced • Each one of these can be plotted on a graph
- 5. Marginal Costs (MC) • ‘The addition to total cost from producing an extra unit of output’ • It is calculated by: – Taking the total cost (TC) and subtracting it from the TC of the previous unit. Units Produced Total Cost Marginal Cost 0 0 - 100 1 100 100 2 200 – Remember MC is always plotted between values.
- 6. Cost Curves MC intersects the ATC curve at its lowest point It is more common to see the graph drawn with only MC and ATC, which is normally labelled just AC
- 7. Definitions • Total Costs: Are all costs of production of a product – includes fixed and variable costs • Fixed Costs: A cost which is independent of output in the short run • Variable Costs: A cost which is related to output produced in the short run • Average Cost: The cost per unit • Marginal Cost: The addition to total cost from producing an extra unit of output