This document discusses the various concepts of costs in economics. It defines different types of costs including fixed costs, variable costs, total costs, average costs and marginal costs. It explains how costs are modeled using total cost curves, average cost curves and marginal cost curves. It also discusses the differences between short-run and long-run costs and the concepts of economies and diseconomies of scale.
1. The document discusses various cost concepts including opportunity cost, outlay cost, total cost, average cost, marginal cost, fixed cost, and variable cost. It explains these concepts for both the short run and long run.
2. In the short run, total cost is the sum of total fixed cost and total variable cost. Average cost and marginal cost are calculated based on changes in total cost and output.
3. In the long run, all inputs are variable and firms can change the size of their plant and operations. Long run average cost is determined by the minimum points of a series of short run average cost curves.
This document discusses the concepts of costs in economics, including different types of costs (fixed, variable, total, average, and marginal costs) and how they relate to each other through cost curves. It provides examples using production functions and cost data from hypothetical cookie and lemonade businesses to illustrate key points. The document seeks to explain how costs are determined from production decisions and influence firm pricing through total cost curves and the relationships between average and marginal cost curves.
The document discusses the first three steps of new product development: idea generation, idea screening, and concept testing tools. It provides details on each step, including sources for generating ideas, characteristics of an effective idea generation process, criteria for screening ideas, and tools that can be used for screening. The key points are that idea generation aims to produce many ideas through creative thinking, idea screening evaluates and selects the most promising ideas to take further, and concept testing tools help translate needs into new product concepts.
This chapter discusses the costs of production for firms. It will examine what costs are included in a firm's total costs, how costs are related to the production process and output quantity, and the meaning of average and marginal costs. The chapter analyzes cost concepts like total, average, and marginal costs. It also discusses the relationship between costs and a firm's production function as well as the differences between fixed and variable costs.
Cost-volume-profit analysis examines how changes in costs and sales volume affect a company's profit. It helps management make decisions about pricing, production levels, and facility choice. It shows how volume impacts total costs and profits. Key assumptions are accurate classification of fixed and variable costs and linear relationships. The breakeven point is where sales revenue equals total costs, with no profit or loss. Margin of safety is the difference between actual and breakeven sales levels, indicating a business's soundness.
Cost accounting is a formal system used to ascertain and control costs of products and services. The objectives of cost accounting include ascertaining costs, controlling costs, and guiding business policies. Cost accounting differs from financial accounting in its purpose, statutory requirements, cost analysis, periodicity of reporting, and control aspects. Cost centers, cost units, and methods of costing like job costing and process costing are used to allocate costs. Elements of cost include direct and indirect materials, direct and indirect labor, and expenses like production, administration, selling and distribution overheads. Total cost is made up of prime cost, works cost, cost of production and total cost or cost of sales.
Environmental scanning is the process of gathering, analyzing, and sharing information about a company's external environment for strategic purposes. There are three types of environmental scanning: ad-hoc scanning for crises, regular scheduled scanning, and continuous scanning. Environmental scanning examines both the macro environment including political, economic, social, and technological factors (PEST analysis), as well as the micro environment including competitors, customers, and a company's internal environment. Environmental scanning helps managers predict future market conditions to make strategic decisions.
Demand & suppaly PPT OF MANAGERIAL ECONOMICS MBABabasab Patil
The document discusses welfare economics and the efficiency of markets. It defines consumer surplus and producer surplus, and how they are measured using demand and supply curves. The market equilibrium maximizes total surplus, which is the sum of consumer and producer surplus. This occurs when resources are allocated efficiently. However, market power and externalities can cause markets to be inefficient.
1. The document discusses various cost concepts including opportunity cost, outlay cost, total cost, average cost, marginal cost, fixed cost, and variable cost. It explains these concepts for both the short run and long run.
2. In the short run, total cost is the sum of total fixed cost and total variable cost. Average cost and marginal cost are calculated based on changes in total cost and output.
3. In the long run, all inputs are variable and firms can change the size of their plant and operations. Long run average cost is determined by the minimum points of a series of short run average cost curves.
This document discusses the concepts of costs in economics, including different types of costs (fixed, variable, total, average, and marginal costs) and how they relate to each other through cost curves. It provides examples using production functions and cost data from hypothetical cookie and lemonade businesses to illustrate key points. The document seeks to explain how costs are determined from production decisions and influence firm pricing through total cost curves and the relationships between average and marginal cost curves.
The document discusses the first three steps of new product development: idea generation, idea screening, and concept testing tools. It provides details on each step, including sources for generating ideas, characteristics of an effective idea generation process, criteria for screening ideas, and tools that can be used for screening. The key points are that idea generation aims to produce many ideas through creative thinking, idea screening evaluates and selects the most promising ideas to take further, and concept testing tools help translate needs into new product concepts.
This chapter discusses the costs of production for firms. It will examine what costs are included in a firm's total costs, how costs are related to the production process and output quantity, and the meaning of average and marginal costs. The chapter analyzes cost concepts like total, average, and marginal costs. It also discusses the relationship between costs and a firm's production function as well as the differences between fixed and variable costs.
Cost-volume-profit analysis examines how changes in costs and sales volume affect a company's profit. It helps management make decisions about pricing, production levels, and facility choice. It shows how volume impacts total costs and profits. Key assumptions are accurate classification of fixed and variable costs and linear relationships. The breakeven point is where sales revenue equals total costs, with no profit or loss. Margin of safety is the difference between actual and breakeven sales levels, indicating a business's soundness.
Cost accounting is a formal system used to ascertain and control costs of products and services. The objectives of cost accounting include ascertaining costs, controlling costs, and guiding business policies. Cost accounting differs from financial accounting in its purpose, statutory requirements, cost analysis, periodicity of reporting, and control aspects. Cost centers, cost units, and methods of costing like job costing and process costing are used to allocate costs. Elements of cost include direct and indirect materials, direct and indirect labor, and expenses like production, administration, selling and distribution overheads. Total cost is made up of prime cost, works cost, cost of production and total cost or cost of sales.
Environmental scanning is the process of gathering, analyzing, and sharing information about a company's external environment for strategic purposes. There are three types of environmental scanning: ad-hoc scanning for crises, regular scheduled scanning, and continuous scanning. Environmental scanning examines both the macro environment including political, economic, social, and technological factors (PEST analysis), as well as the micro environment including competitors, customers, and a company's internal environment. Environmental scanning helps managers predict future market conditions to make strategic decisions.
Demand & suppaly PPT OF MANAGERIAL ECONOMICS MBABabasab Patil
The document discusses welfare economics and the efficiency of markets. It defines consumer surplus and producer surplus, and how they are measured using demand and supply curves. The market equilibrium maximizes total surplus, which is the sum of consumer and producer surplus. This occurs when resources are allocated efficiently. However, market power and externalities can cause markets to be inefficient.
This document discusses the concepts of costs in economics. It defines different types of costs including fixed costs, variable costs, total costs, average costs, and marginal costs. It explains the relationships between these different cost measures and how they are depicted graphically through cost curves. Specifically, it notes that the marginal cost curve rises with output while the average total cost curve is U-shaped.
This document discusses the different types of costs that firms face in production, including total, fixed, variable, average, and marginal costs. It explains that total costs are the sum of fixed and variable costs. Fixed costs do not vary with output, while variable costs do. Average costs are calculated by dividing total costs by quantity. Marginal cost is the change in total cost from producing an additional unit of output. The shapes of the average and marginal cost curves are explained, including how marginal cost intersects average total cost at the efficient scale where costs are minimized.
The document discusses the costs of production for firms. It explains that a firm's total costs are divided into fixed and variable costs. Fixed costs do not vary with output, while variable costs do vary with output. The marginal cost is the change in total cost from producing an additional unit, and typically rises as output increases due to diminishing returns. Average costs first fall and then rise with output, resulting in a U-shaped average cost curve. In the long run, more costs become variable, changing the cost structures compared to the short run.
1) Firms aim to maximize profits by producing at the quantity where marginal cost equals marginal revenue.
2) A firm's costs include explicit costs like wages as well as implicit opportunity costs. Total costs are used to calculate economic profit.
3) As a firm's production increases, its marginal costs will rise due to diminishing returns. Average costs first fall then rise, creating a U-shaped average total cost curve.
This document discusses the concepts of costs and cost curves. It defines different types of costs including fixed costs, variable costs, total costs, average costs and marginal costs. It explains the typical shapes of total cost, average cost and marginal cost curves. Specifically, it notes that the marginal cost curve rises with output while the average total cost curve is U-shaped, with the marginal cost curve crossing the average cost curve at the minimum point. The document also distinguishes between costs in the short run versus long run.
This document discusses the different types of costs that firms face in production, including fixed costs, variable costs, total costs, average costs, and marginal costs. It provides examples using production functions and cost curves for cookie and lemonade businesses. Key points covered include defining costs as opportunity costs, distinguishing economic profit from accounting profit, how diminishing marginal productivity relates to rising marginal costs, the typical U-shape of average total cost curves, and how marginal cost intersects average total cost at the minimum or efficient scale of production. Production and cost concepts are illustrated with tables and figures.
A case study of cost analysis and pricing decision of smeEnamul Islam
M. Keramot Ali Hall Dining is a sole proprietorship located on the campus of Patuakhali Science and Technology University. The report analyzes the dining hall's costs and profits over a one month period. Key findings include inaccurate sales records and an imperfect pricing system. Recommendations are to implement proper accounting practices, track sales volumes more carefully, and improve the costing system to enhance decision making.
This document describes an interactive budgeting tool developed by researchers at the University of Arkansas to help fruit producers assess the costs, revenues, risks and break-even points of different production practices. The tool allows users to customize inputs like yields and prices to model "what if" scenarios. It also performs breakeven, sensitivity and risk analyses. An example application looks at conventional versus organic apple production over 18 years. The tool and similar ones for other fruits aim to help producers make more informed economic decisions.
This document discusses key concepts related to perfectly competitive supply including:
1) It explains how opportunity cost relates to the supply curve and discusses individual firm versus market supply curves.
2) It covers determining a perfectly competitive firm's profit-maximizing output level and profit in the short run based on marginal costs and revenues.
3) The document also defines producer surplus as the difference between the market price and a seller's reservation price.
This document discusses the different types of costs that firms face in production. It defines total, fixed, variable, average, and marginal costs. Total cost is the market value of all inputs used and includes both explicit costs that require money outlays and implicit opportunity costs. Fixed costs do not vary with output while variable costs do. The relationships between these costs are shown using tables of data and graphs of cost curves, including the typical U-shaped average total cost curve. Costs differ in the short-run versus long-run due to variable fixed costs.
This document discusses key concepts in cost theory and its connection to cost accounting. It defines cost objects, explicit and implicit costs, and how economists and accountants analyze costs differently. Economists consider both explicit and implicit opportunity costs, while accountants only consider explicit costs involving cash outflows. The document provides examples to illustrate these differences and concepts like economic profit versus accounting profit. It also discusses production functions, marginal product, total costs curves, and other cost terminology.
Supply demand and government policies ppt OF MBA Babasab Patil
The document discusses how government policies like price controls, taxes, minimum wages can affect market outcomes. Price controls like ceilings and floors are used to regulate maximum and minimum prices but can cause shortages or surpluses by creating a gap between supply and demand. Taxes reduce the quantity traded by placing a wedge between buyer and seller prices. The tax burden depends on price elasticities, falling more on the inelastic side of the market. The role of economists is to analyze these policies using economic theories.
Costing practices in m. keramot ali hall diningEnamul Islam
This document contains cost sheets and profit/loss statements for a university dining hall. It outlines the daily and monthly costs for raw materials, wages, overhead, and sales. It identifies issues with the dining hall's accounting practices, profitability percentages, sales volume tracking, and pricing system. It recommends they improve accounting, track sales more closely, focus on high profit items, and price products based on costs and market rates. It also notes many small business owners in the country are not well-educated on maximizing profit through strategic use of assets given available skilled labor and management.
1) Understanding profit margins and using enterprise budgets to calculate costs of production and transaction costs is key to achieving profitability and running a successful business.
2) Enterprise budgets allow farmers to evaluate production practices, compare profitability of different crop mixes, and determine the most profitable marketing outlets.
3) Pricing products requires understanding markups over costs and gross margins, as well as considering customer willingness to pay and competition. Setting price to ensure sufficient profit margin while remaining competitive is important.
1) Understanding profit margins and using enterprise budgets to calculate costs of production and transaction costs is key to achieving profitability and running a successful business.
2) Enterprise budgets allow farmers to evaluate production practices, compare profitability of different crop mixes, and determine the most profitable marketing outlets.
3) Pricing products requires understanding markups over costs and gross margins, as well as considering customer willingness to pay and competition.
This document contains information about consumer demand, firm marginal costs, data analytics, opportunity cost, sunk cost, fixed cost, variable cost, and marginal cost. It includes examples of demand curves, an analysis of when consumer surplus is maximized, and calculations of marginal benefit, marginal cost, average total cost, and optimal production levels.
The document defines efficiency as producing goods and services at the lowest possible cost to provide the greatest value. Markets are efficient when marginal cost equals marginal benefit. When price is lower than value, consumers enjoy surplus, and when price exceeds costs, producers earn surplus. However, markets can be inefficient due to price controls, taxes/subsidies, monopoly, public goods, and externalities, resulting in deadweight loss to society.
This document discusses pricing strategies and cost accounting for small businesses. It explains that pricing should consider market factors and costs of production to ensure adequate profit margins. Understanding costs through accounting allows for better decision making around pricing, product mix, and process improvements. The document outlines financial statements like income statements, balance sheets, and cash flows that are important for financial management. It also covers break-even analysis to determine the sales volume or price needed to cover total costs. An example is provided to demonstrate allocating overhead costs across multiple products using different allocation methods. Overall, the key message is that understanding costs through accounting helps small businesses optimize pricing and profits.
The Cost Of Production - Dealing with Cost - Explicit and Implicit Cost - Eco...FaHaD .H. NooR
Economics #UCP
What is 'Production Cost'
Production cost refers to the cost incurred by a business when manufacturing a good or providing a service. Production costs include a variety of expenses including, but not limited to, labor, raw materials, consumable manufacturing supplies and general overhead. Additionally, any taxes levied by the government or royalties owed by natural resource extracting companies are also considered production costs.
BREAKING DOWN 'Production Cost'
Also referred to as the cost of production, production costs include expenditures relating to the manufacturing or creation of goods or services. For a cost to qualify as a production cost it must be directly tied to the generation of revenue for the company. Manufacturers experience product costs relating to both the materials required to create an item as well as the labor need to create it. Service industries experience production costs in regards to the labor required to provide the service as well as any materials costs involved in providing the aforementioned service.
In production, there are direct costs and indirect costs. For example, direct costs for manufacturing an automobile are materials such as the plastic and metal materials used as well as the labor required to produce the finished product. Indirect costs include overhead such as rent, administrative salaries or utility expenses.
Deriving Unit Costs for Product Pricing
To figure out the cost of production per unit, the cost of production is divided by the number of units produced. Once the cost per unit is determined, the information can be used to help develop an appropriate sales price for the completed item. In order to break even, the sales price must cover the cost per unit. Amounts above the cost per unit are often seen as profit while amounts below the cost per unit result in losses.
Segmentation module 4 mba 1st sem by babasab patil (karrisatte)Babasab Patil
The document discusses market segmentation and positioning. It defines market segmentation as dividing a large market into smaller, more homogeneous subgroups based on characteristics like needs, behaviors, or demographics. Effective segmentation requires groups that are measurable, substantial, accessible, differentiable, and actionable. Companies can segment based on geographic, demographic, psychographic, or behavioral factors. Once segmented, companies must select target markets and determine a positioning strategy that focuses on important, distinctive, and superior benefits compared to competitors.
Marketing management module 1 core concepts of marketing mba 1st sem by baba...Babasab Patil
This document provides summaries of core marketing concepts:
1. It defines key concepts like needs, wants, demand, and different types of demand. It also defines products, value, cost, exchange, transactions, transfer, and negotiation.
2. It discusses relationship marketing and marketing networks. It also defines markets, marketers, and provides definitions of marketing from AMA and the marketing process.
3. It covers designing customer-driven marketing strategies like the production, product, selling, marketing, and societal concepts. It also discusses building customer relationships, customer relationship management, customer value, and satisfaction.
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Similar to The costs of production PPT MBA FINANCE COST ACCOUNTANCY
This document discusses the concepts of costs in economics. It defines different types of costs including fixed costs, variable costs, total costs, average costs, and marginal costs. It explains the relationships between these different cost measures and how they are depicted graphically through cost curves. Specifically, it notes that the marginal cost curve rises with output while the average total cost curve is U-shaped.
This document discusses the different types of costs that firms face in production, including total, fixed, variable, average, and marginal costs. It explains that total costs are the sum of fixed and variable costs. Fixed costs do not vary with output, while variable costs do. Average costs are calculated by dividing total costs by quantity. Marginal cost is the change in total cost from producing an additional unit of output. The shapes of the average and marginal cost curves are explained, including how marginal cost intersects average total cost at the efficient scale where costs are minimized.
The document discusses the costs of production for firms. It explains that a firm's total costs are divided into fixed and variable costs. Fixed costs do not vary with output, while variable costs do vary with output. The marginal cost is the change in total cost from producing an additional unit, and typically rises as output increases due to diminishing returns. Average costs first fall and then rise with output, resulting in a U-shaped average cost curve. In the long run, more costs become variable, changing the cost structures compared to the short run.
1) Firms aim to maximize profits by producing at the quantity where marginal cost equals marginal revenue.
2) A firm's costs include explicit costs like wages as well as implicit opportunity costs. Total costs are used to calculate economic profit.
3) As a firm's production increases, its marginal costs will rise due to diminishing returns. Average costs first fall then rise, creating a U-shaped average total cost curve.
This document discusses the concepts of costs and cost curves. It defines different types of costs including fixed costs, variable costs, total costs, average costs and marginal costs. It explains the typical shapes of total cost, average cost and marginal cost curves. Specifically, it notes that the marginal cost curve rises with output while the average total cost curve is U-shaped, with the marginal cost curve crossing the average cost curve at the minimum point. The document also distinguishes between costs in the short run versus long run.
This document discusses the different types of costs that firms face in production, including fixed costs, variable costs, total costs, average costs, and marginal costs. It provides examples using production functions and cost curves for cookie and lemonade businesses. Key points covered include defining costs as opportunity costs, distinguishing economic profit from accounting profit, how diminishing marginal productivity relates to rising marginal costs, the typical U-shape of average total cost curves, and how marginal cost intersects average total cost at the minimum or efficient scale of production. Production and cost concepts are illustrated with tables and figures.
A case study of cost analysis and pricing decision of smeEnamul Islam
M. Keramot Ali Hall Dining is a sole proprietorship located on the campus of Patuakhali Science and Technology University. The report analyzes the dining hall's costs and profits over a one month period. Key findings include inaccurate sales records and an imperfect pricing system. Recommendations are to implement proper accounting practices, track sales volumes more carefully, and improve the costing system to enhance decision making.
This document describes an interactive budgeting tool developed by researchers at the University of Arkansas to help fruit producers assess the costs, revenues, risks and break-even points of different production practices. The tool allows users to customize inputs like yields and prices to model "what if" scenarios. It also performs breakeven, sensitivity and risk analyses. An example application looks at conventional versus organic apple production over 18 years. The tool and similar ones for other fruits aim to help producers make more informed economic decisions.
This document discusses key concepts related to perfectly competitive supply including:
1) It explains how opportunity cost relates to the supply curve and discusses individual firm versus market supply curves.
2) It covers determining a perfectly competitive firm's profit-maximizing output level and profit in the short run based on marginal costs and revenues.
3) The document also defines producer surplus as the difference between the market price and a seller's reservation price.
This document discusses the different types of costs that firms face in production. It defines total, fixed, variable, average, and marginal costs. Total cost is the market value of all inputs used and includes both explicit costs that require money outlays and implicit opportunity costs. Fixed costs do not vary with output while variable costs do. The relationships between these costs are shown using tables of data and graphs of cost curves, including the typical U-shaped average total cost curve. Costs differ in the short-run versus long-run due to variable fixed costs.
This document discusses key concepts in cost theory and its connection to cost accounting. It defines cost objects, explicit and implicit costs, and how economists and accountants analyze costs differently. Economists consider both explicit and implicit opportunity costs, while accountants only consider explicit costs involving cash outflows. The document provides examples to illustrate these differences and concepts like economic profit versus accounting profit. It also discusses production functions, marginal product, total costs curves, and other cost terminology.
Supply demand and government policies ppt OF MBA Babasab Patil
The document discusses how government policies like price controls, taxes, minimum wages can affect market outcomes. Price controls like ceilings and floors are used to regulate maximum and minimum prices but can cause shortages or surpluses by creating a gap between supply and demand. Taxes reduce the quantity traded by placing a wedge between buyer and seller prices. The tax burden depends on price elasticities, falling more on the inelastic side of the market. The role of economists is to analyze these policies using economic theories.
Costing practices in m. keramot ali hall diningEnamul Islam
This document contains cost sheets and profit/loss statements for a university dining hall. It outlines the daily and monthly costs for raw materials, wages, overhead, and sales. It identifies issues with the dining hall's accounting practices, profitability percentages, sales volume tracking, and pricing system. It recommends they improve accounting, track sales more closely, focus on high profit items, and price products based on costs and market rates. It also notes many small business owners in the country are not well-educated on maximizing profit through strategic use of assets given available skilled labor and management.
1) Understanding profit margins and using enterprise budgets to calculate costs of production and transaction costs is key to achieving profitability and running a successful business.
2) Enterprise budgets allow farmers to evaluate production practices, compare profitability of different crop mixes, and determine the most profitable marketing outlets.
3) Pricing products requires understanding markups over costs and gross margins, as well as considering customer willingness to pay and competition. Setting price to ensure sufficient profit margin while remaining competitive is important.
1) Understanding profit margins and using enterprise budgets to calculate costs of production and transaction costs is key to achieving profitability and running a successful business.
2) Enterprise budgets allow farmers to evaluate production practices, compare profitability of different crop mixes, and determine the most profitable marketing outlets.
3) Pricing products requires understanding markups over costs and gross margins, as well as considering customer willingness to pay and competition.
This document contains information about consumer demand, firm marginal costs, data analytics, opportunity cost, sunk cost, fixed cost, variable cost, and marginal cost. It includes examples of demand curves, an analysis of when consumer surplus is maximized, and calculations of marginal benefit, marginal cost, average total cost, and optimal production levels.
The document defines efficiency as producing goods and services at the lowest possible cost to provide the greatest value. Markets are efficient when marginal cost equals marginal benefit. When price is lower than value, consumers enjoy surplus, and when price exceeds costs, producers earn surplus. However, markets can be inefficient due to price controls, taxes/subsidies, monopoly, public goods, and externalities, resulting in deadweight loss to society.
This document discusses pricing strategies and cost accounting for small businesses. It explains that pricing should consider market factors and costs of production to ensure adequate profit margins. Understanding costs through accounting allows for better decision making around pricing, product mix, and process improvements. The document outlines financial statements like income statements, balance sheets, and cash flows that are important for financial management. It also covers break-even analysis to determine the sales volume or price needed to cover total costs. An example is provided to demonstrate allocating overhead costs across multiple products using different allocation methods. Overall, the key message is that understanding costs through accounting helps small businesses optimize pricing and profits.
The Cost Of Production - Dealing with Cost - Explicit and Implicit Cost - Eco...FaHaD .H. NooR
Economics #UCP
What is 'Production Cost'
Production cost refers to the cost incurred by a business when manufacturing a good or providing a service. Production costs include a variety of expenses including, but not limited to, labor, raw materials, consumable manufacturing supplies and general overhead. Additionally, any taxes levied by the government or royalties owed by natural resource extracting companies are also considered production costs.
BREAKING DOWN 'Production Cost'
Also referred to as the cost of production, production costs include expenditures relating to the manufacturing or creation of goods or services. For a cost to qualify as a production cost it must be directly tied to the generation of revenue for the company. Manufacturers experience product costs relating to both the materials required to create an item as well as the labor need to create it. Service industries experience production costs in regards to the labor required to provide the service as well as any materials costs involved in providing the aforementioned service.
In production, there are direct costs and indirect costs. For example, direct costs for manufacturing an automobile are materials such as the plastic and metal materials used as well as the labor required to produce the finished product. Indirect costs include overhead such as rent, administrative salaries or utility expenses.
Deriving Unit Costs for Product Pricing
To figure out the cost of production per unit, the cost of production is divided by the number of units produced. Once the cost per unit is determined, the information can be used to help develop an appropriate sales price for the completed item. In order to break even, the sales price must cover the cost per unit. Amounts above the cost per unit are often seen as profit while amounts below the cost per unit result in losses.
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The document discusses market segmentation and positioning. It defines market segmentation as dividing a large market into smaller, more homogeneous subgroups based on characteristics like needs, behaviors, or demographics. Effective segmentation requires groups that are measurable, substantial, accessible, differentiable, and actionable. Companies can segment based on geographic, demographic, psychographic, or behavioral factors. Once segmented, companies must select target markets and determine a positioning strategy that focuses on important, distinctive, and superior benefits compared to competitors.
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This document provides summaries of core marketing concepts:
1. It defines key concepts like needs, wants, demand, and different types of demand. It also defines products, value, cost, exchange, transactions, transfer, and negotiation.
2. It discusses relationship marketing and marketing networks. It also defines markets, marketers, and provides definitions of marketing from AMA and the marketing process.
3. It covers designing customer-driven marketing strategies like the production, product, selling, marketing, and societal concepts. It also discusses building customer relationships, customer relationship management, customer value, and satisfaction.
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This document presents an introduction to marketing principles. It defines marketing as creating and exchanging products and services to satisfy customer needs. Marketing involves understanding customer wants and demands, developing products and services, communicating value to customers, and managing relationships. The marketing concept emphasizes satisfying customer needs over the production, product, and selling concepts. Marketing tasks include developing strategies, understanding markets, creating value, and building long-term growth.
Segmentation module 4 mba 1st sem by babasab patil (karrisatte)Babasab Patil
The document discusses market segmentation and positioning. It defines market segmentation as dividing a large market into smaller, more homogeneous subgroups based on characteristics like needs, behaviors, or demographics. Effective segmentation requires groups that are measurable, substantial, accessible, differentiable, and actionable. Markets can be segmented by demographics, behaviors, geography, and psychographics. The key aspects of segmentation and positioning are discussed in detail.
Marketing management module 1 important questions of marketing mba 1st sem...Babasab Patil
This document lists important marketing questions that could be asked in exams. It covers questions ranging from basic concepts like marketing, market and exchange to more advanced topics like marketing mix, product portfolio, and buyer adoption process. The questions are organized into different sections for 3 mark, 5 mark and 7 mark questions. They provide an overview of the key topics and issues that marketing students need to be familiar with.
Discovery shuttle processing NASA before launching the rocket by babasab ...Babasab Patil
The document summarizes the processing steps for the space shuttle Discovery before its launch, including the external tank being delivered by barge and assembled vertically, solid rocket boosters and engines being attached, the shuttle being attached to the external tank, a payload being prepared and moved to the launch pad, and finally the shuttle arriving at the launch pad ready for launch.
Corporate lessons from__iim__calcutta by babasab patil Babasab Patil
This document provides 3 lessons from corporations about dealing with change. The first lesson uses a story about a crow and rabbit to show the importance of having a high position when doing nothing. The second lesson tells a story about a turkey eating bull dung to reach the top of a tree, but then getting shot, to illustrate that misleading tactics may get you to the top but won't keep you there. The third lesson tells a story about a bird getting warm in cow dung but then getting eaten by a cat to teach the morals of not assuming those who help you are friends and keeping quiet when vulnerable.
Communication problems between men and women by babasab patil Babasab Patil
A woman yells "horse!" at a man driving in the opposite direction, who replies "witch!" while laughing. As the man takes a curve in the road, he crashes, demonstrating that men often do not understand what women communicate.
The document discusses the benefits of exercise for mental health. Regular physical activity can help reduce anxiety and depression and improve mood and cognitive function. Exercise causes chemical changes in the brain that may help protect against mental illness and improve symptoms.
Best aviation photography_ever__bar_none by babasab patil Babasab Patil
The document discusses the benefits of exercise for mental health. Regular physical activity can help reduce anxiety and depression and improve mood and cognitive functioning. Exercise boosts blood flow, releases endorphins, and promotes changes in the brain which help enhance one's emotional well-being and mental clarity.
The document describes three stonecutters working on a roadside who gave different responses when asked about their work. The first did it out of necessity to provide for their child, the second out of a duty to their nation, and the third as a form of worship. Their different attitudes were reflected in the careers of their children, with the first becoming a stonecutter, the second an army officer, and the third a renowned architect, showing how attitude can make a big difference.
Three stonecutters were asked why they did their laborious work. The first said it was out of necessity to provide for their child. The second took pride in their contribution to building infrastructure for their nation. The third found worship in their work which was constructing a temple. Years later, the children of the stonecutters followed similar paths - the first became a stonecutter, the second an army officer, and the third a renowned architect, showing that one's attitude can impact their opportunities and future.
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
South Dakota State University degree offer diploma Transcriptynfqplhm
办理美国SDSU毕业证书制作南达科他州立大学假文凭定制Q微168899991做SDSU留信网教留服认证海牙认证改SDSU成绩单GPA做SDSU假学位证假文凭高仿毕业证GRE代考如何申请南达科他州立大学South Dakota State University degree offer diploma Transcript
A toxic combination of 15 years of low growth, and four decades of high inequality, has left Britain poorer and falling behind its peers. Productivity growth is weak and public investment is low, while wages today are no higher than they were before the financial crisis. Britain needs a new economic strategy to lift itself out of stagnation.
Scotland is in many ways a microcosm of this challenge. It has become a hub for creative industries, is home to several world-class universities and a thriving community of businesses – strengths that need to be harness and leveraged. But it also has high levels of deprivation, with homelessness reaching a record high and nearly half a million people living in very deep poverty last year. Scotland won’t be truly thriving unless it finds ways to ensure that all its inhabitants benefit from growth and investment. This is the central challenge facing policy makers both in Holyrood and Westminster.
What should a new national economic strategy for Scotland include? What would the pursuit of stronger economic growth mean for local, national and UK-wide policy makers? How will economic change affect the jobs we do, the places we live and the businesses we work for? And what are the prospects for cities like Glasgow, and nations like Scotland, in rising to these challenges?
Discover the Future of Dogecoin with Our Comprehensive Guidance36 Crypto
Learn in-depth about Dogecoin's trajectory and stay informed with 36crypto's essential and up-to-date information about the crypto space.
Our presentation delves into Dogecoin's potential future, exploring whether it's destined to skyrocket to the moon or face a downward spiral. In addition, it highlights invaluable insights. Don't miss out on this opportunity to enhance your crypto understanding!
https://36crypto.com/the-future-of-dogecoin-how-high-can-this-cryptocurrency-reach/
Madhya Pradesh, the "Heart of India," boasts a rich tapestry of culture and heritage, from ancient dynasties to modern developments. Explore its land records, historical landmarks, and vibrant traditions. From agricultural expanses to urban growth, Madhya Pradesh offers a unique blend of the ancient and modern.
13 Jun 24 ILC Retirement Income Summit - slides.pptxILC- UK
ILC's Retirement Income Summit was hosted by M&G and supported by Canada Life. The event brought together key policymakers, influencers and experts to help identify policy priorities for the next Government and ensure more of us have access to a decent income in retirement.
Contributors included:
Jo Blanden, Professor in Economics, University of Surrey
Clive Bolton, CEO, Life Insurance M&G Plc
Jim Boyd, CEO, Equity Release Council
Molly Broome, Economist, Resolution Foundation
Nida Broughton, Co-Director of Economic Policy, Behavioural Insights Team
Jonathan Cribb, Associate Director and Head of Retirement, Savings, and Ageing, Institute for Fiscal Studies
Joanna Elson CBE, Chief Executive Officer, Independent Age
Tom Evans, Managing Director of Retirement, Canada Life
Steve Groves, Chair, Key Retirement Group
Tish Hanifan, Founder and Joint Chair of the Society of Later life Advisers
Sue Lewis, ILC Trustee
Siobhan Lough, Senior Consultant, Hymans Robertson
Mick McAteer, Co-Director, The Financial Inclusion Centre
Stuart McDonald MBE, Head of Longevity and Democratic Insights, LCP
Anusha Mittal, Managing Director, Individual Life and Pensions, M&G Life
Shelley Morris, Senior Project Manager, Living Pension, Living Wage Foundation
Sarah O'Grady, Journalist
Will Sherlock, Head of External Relations, M&G Plc
Daniela Silcock, Head of Policy Research, Pensions Policy Institute
David Sinclair, Chief Executive, ILC
Jordi Skilbeck, Senior Policy Advisor, Pensions and Lifetime Savings Association
Rt Hon Sir Stephen Timms, former Chair, Work & Pensions Committee
Nigel Waterson, ILC Trustee
Jackie Wells, Strategy and Policy Consultant, ILC Strategic Advisory Board
An accounting information system (AIS) refers to tools and systems designed for the collection and display of accounting information so accountants and executives can make informed decisions.
Discovering Delhi - India's Cultural Capital.pptxcosmo-soil
Delhi, the heartbeat of India, offers a rich blend of history, culture, and modernity. From iconic landmarks like the Red Fort to bustling commercial hubs and vibrant culinary scenes, Delhi's real estate landscape is dynamic and diverse. Discover the essence of India's capital, where tradition meets innovation.
What Lessons Can New Investors Learn from Newman Leech’s Success?Newman Leech
Newman Leech's success in the real estate industry is based on key lessons and principles, offering practical advice for new investors and serving as a blueprint for building a successful career.
The Rise and Fall of Ponzi Schemes in America.pptxDiana Rose
Ponzi schemes, a notorious form of financial fraud, have plagued America’s investment landscape for decades. Named after Charles Ponzi, who orchestrated one of the most infamous schemes in the early 20th century, these fraudulent operations promise high returns with little or no risk, only to collapse and leave investors with significant losses. This article explores the nature of Ponzi schemes, notable cases in American history, their impact on victims, and measures to prevent falling prey to such scams.
Understanding Ponzi Schemes
A Ponzi scheme is an investment scam where returns are paid to earlier investors using the capital from newer investors, rather than from legitimate profit earned. The scheme relies on a constant influx of new investments to continue paying the promised returns. Eventually, when the flow of new money slows down or stops, the scheme collapses, leaving the majority of investors with substantial financial losses.
Historical Context: Charles Ponzi and His Legacy
Charles Ponzi is the namesake of this deceptive practice. In the 1920s, Ponzi promised investors in Boston a 50% return within 45 days or 100% return in 90 days through arbitrage of international reply coupons. Initially, he paid returns as promised, not from profits, but from the investments of new participants. When his scheme unraveled, it resulted in losses exceeding $20 million (equivalent to about $270 million today).
Notable American Ponzi Schemes
1. Bernie Madoff: Perhaps the most notorious Ponzi scheme in recent history, Bernie Madoff’s fraud involved $65 billion. Madoff, a well-respected figure in the financial industry, promised steady, high returns through a secretive investment strategy. His scheme lasted for decades before collapsing in 2008, devastating thousands of investors, including individuals, charities, and institutional clients.
2. Allen Stanford: Through his company, Stanford Financial Group, Allen Stanford orchestrated a $7 billion Ponzi scheme, luring investors with fraudulent certificates of deposit issued by his offshore bank. Stanford promised high returns and lavish lifestyle benefits to his investors, which ultimately led to a 110-year prison sentence for the financier in 2012.
3. Tom Petters: In a scheme that lasted more than a decade, Tom Petters ran a $3.65 billion Ponzi scheme, using his company, Petters Group Worldwide. He claimed to buy and sell consumer electronics, but in reality, he used new investments to pay off old debts and fund his extravagant lifestyle. Petters was convicted in 2009 and sentenced to 50 years in prison.
4. Eric Dalius and Saivian: Eric Dalius, a prominent figure behind Saivian, a cashback program promising high returns, is under scrutiny for allegedly orchestrating a Ponzi scheme. Saivian enticed investors with promises of up to 20% cash back on everyday purchases. However, investigations suggest that the returns were paid using new investments rather than legitimate profits. The collapse of Saivian l
How to Invest in Cryptocurrency for Beginners: A Complete GuideDaniel
Cryptocurrency is digital money that operates independently of a central authority, utilizing cryptography for security. Unlike traditional currencies issued by governments (fiat currencies), cryptocurrencies are decentralized and typically operate on a technology called blockchain. Each cryptocurrency transaction is recorded on a public ledger, ensuring transparency and security.
Cryptocurrencies can be used for various purposes, including online purchases, investment opportunities, and as a means of transferring value globally without the need for intermediaries like banks.
2. The Market Forces of Supply and
Demand
• Supply and demand are the two words that
economists use most often.
• Supply and demand are the forces that make
market economies work.
• Modern microeconomics is about supply,
demand, and market equilibrium.
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3. WHAT ARE COSTS?
According to the Law of Supply:
Firms are willing to produce and sell a greater
quantity of a good when the price of the good is
high.
This results in a supply curve that slopes upward.
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4. WHAT ARE COSTS?
• The Firm’s Objective
– The economic goal of the firm is to maximize
profits.
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5. Total Revenue, Total Cost, and Profit
Total Revenue
The amount a firm receives for the sale of its
output.
Total Cost
The market value of the inputs a firm uses in
production.
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6. Total Revenue, Total Cost, and Profit
Profit is the firm’s total revenue minus its total
cost.
Profit = Total revenue - Total cost
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7. Costs as Opportunity Costs
• A firm’s cost of production includes all the
opportunity costs of making its output of
goods and services.
• Explicit and Implicit Costs
– A firm’s cost of production include explicit costs
and implicit costs.
• Explicit costs are input costs that require a direct outlay
of money by the firm.
• Implicit costs are input costs that do not require an
outlay of money by the firm.
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8. Economic Profit versus Accounting Profit
• Economists measure a firm’s economic profit
as total revenue minus total cost, including
both explicit and implicit costs.
• Accountants measure the accounting profit as
the firm’s total revenue minus only the firm’s
explicit costs.
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9. Economic Profit versus Accounting Profit
• When total revenue exceeds both explicit and
implicit costs, the firm earns economic profit.
– Economic profit is smaller than accounting profit.
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10. Figure 1 Economic versus Accountants
Revenue
Total
opportunity
costs
How an Economist
Views a Firm
How an Accountant
Views a Firm
Revenue
Economic
profit
Implicit
costs
Explicit
costs
Explicit
costs
Accounting
profit
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11. Table 1 A Production Function and Total Cost: Hungry
Helen’s Cookie Factory
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12. PRODUCTION AND COSTS
• The Production Function
– The production function shows the relationship
between quantity of inputs used to make a good
and the quantity of output of that good.
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13. The Production Function
• Marginal Product
– The marginal product of any input in the
production process is the increase in output that
arises from an additional unit of that input.
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14. The Production Function
• Diminishing Marginal Product
– Diminishing marginal product is the property
whereby the marginal product of an input declines
as the quantity of the input increases.
• Example: As more and more workers are hired at a firm,
each additional worker contributes less and less to
production because the firm has a limited amount of
equipment.
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15. Figure 2 Hungry Helen’s Production Function
Quantity of
Output
(cookies
per hour)
150
140
130
120
110
100
90
80
70
60
50
40
30
20
10
Number of Workers Hired0 1 2 3 4 5
Production function
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16. From the Production Function to the Total-Cost Curve
• The relationship between the quantity a firm
can produce and its costs determines pricing
decisions.
• The total-cost curve shows this relationship
graphically.
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17. Table 1 A Production Function and Total Cost: Hungry
Helen’s Cookie Factory
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19. THE VARIOUS MEASURES OF COST
• Costs of production may be divided into fixed
costs and variable costs.
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20. Fixed and Variable Costs
Fixed costs are those costs that do not vary
with the quantity of output produced.
Variable costs are those costs that do vary
with the quantity of output produced.
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21. Fixed and Variable Costs
• Total Costs
– Total Fixed Costs (TFC)
– Total Variable Costs (TVC)
– Total Costs (TC)
– TC = TFC + TVC
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22. Table 2 The Various Measures of Cost: Thirsty Thelma’s
Lemonade Stand
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23. Fixed and Variable Costs
• Average Costs
– Average costs can be determined by dividing the
firm’s costs by the quantity of output it produces.
– The average cost is the cost of each typical unit of
product.
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24. Fixed and Variable Costs
• Average Costs
– Average Fixed Costs (AFC)
– Average Variable Costs (AVC)
– Average Total Costs (ATC)
– ATC = AFC + AVC
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25. Average Costs
AFC
FC
Q
Fixed cost
Quantity
AVC
VC
Q
Variable cost
Quantity
ATC
TC
Q
Total cost
Quantity
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26. Table 2 The Various Measures of Cost: Thirsty Thelma’s
Lemonade Stand
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27. Fixed and Variable Costs
• Marginal Cost
– Marginal cost (MC) measures the increase in total
cost that arises from an extra unit of production.
– Marginal cost helps answer the following
question:
• How much does it cost to produce an additional unit of
output?
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31. Figure 5 Thirsty Thelma’s Average-Cost and Marginal-Cost Curves
Costs
$3.50
3.25
3.00
2.75
2.50
2.25
2.00
1.75
1.50
1.25
1.00
0.75
0.50
0.25
Quantity
of Output
(glasses of lemonade per hour)
0 1 432 765 98 10
MC
ATC
AVC
AFC
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32. Cost Curves and Their Shapes
• Marginal cost rises with the amount of output
produced.
– This reflects the property of diminishing marginal
product.
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33. Figure 5 Thirsty Thelma’s Average-Cost and Marginal-Cost Curves
Costs
$3.50
3.25
3.00
2.75
2.50
2.25
2.00
1.75
1.50
1.25
1.00
0.75
0.50
0.25
Quantity
of Output
(glasses of lemonade per hour)
0 1 432 765 98 10
MC
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34. Cost Curves and Their Shapes
The average total-cost curve is U-shaped.
At very low levels of output average total cost
is high because fixed cost is spread over only a
few units.
Average total cost declines as output
increases.
Average total cost starts rising because
average variable cost rises substantially.
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36. Cost Curves and Their Shapes
• Relationship between Marginal Cost and
Average Total Cost
– Whenever marginal cost is less than average total
cost, average total cost is falling.
– Whenever marginal cost is greater than average
total cost, average total cost is rising.
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37. Cost Curves and Their Shapes
Relationship Between Marginal Cost and
Average Total Cost
The marginal-cost curve crosses the average-total-
cost curve at the efficient scale.
Efficient scale is the quantity that minimizes average
total cost.
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38. Figure 5 Thirsty Thelma’s Average-Cost and Marginal-Cost Curves
Costs
$3.50
3.25
3.00
2.75
2.50
2.25
2.00
1.75
1.50
1.25
1.00
0.75
0.50
0.25
Quantity
of Output
(glasses of lemonade per hour)
0 1 432 765 98 10
ATC
MC
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39. Typical Cost Curves
It is now time to examine the
relationships that exist between the
different measures of cost.
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42. Figure 6 Cost Curves
(b) Marginal- and Average-Cost Curves
Quantity of Output (bagels per hour)
Costs
$3.00
2.50
2.00
1.50
1.00
0.50
0 42 6 8 141210
MC
ATC
AVC
AFC
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43. Typical Cost Curves
• Three Important Properties of Cost Curves
– Marginal cost eventually rises with the quantity of
output.
– The average-total-cost curve is U-shaped.
– The marginal-cost curve crosses the average-total-
cost curve at the minimum of average total cost.
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44. COSTS IN THE SHORT RUN AND IN THE
LONG RUN
• For many firms, the division of total costs
between fixed and variable costs depends on
the time horizon being considered.
– In the short run, some costs are fixed.
– In the long run, fixed costs become variable costs.
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45. COSTS IN THE SHORT RUN AND IN THE
LONG RUN
• Because many costs are fixed in the short run
but variable in the long run, a firm’s long-run
cost curves differ from its short-run cost
curves.
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46. Figure 7 Average Total Cost in the Short and Long Run
Quantity of
Cars per Day
0
Average
Total
Cost
1,200
$12,000
ATC in short
run with
small factory
ATC in short
run with
medium factory
ATC in short
run with
large factory
ATC in long run
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47. Economies and Diseconomies of Scale
• Economies of scale refer to the property
whereby long-run average total cost falls as
the quantity of output increases.
• Diseconomies of scale refer to the property
whereby long-run average total cost rises as
the quantity of output increases.
• Constant returns to scale refers to the
property whereby long-run average total cost
stays the same as the quantity of output
increases4/11/2013 Babasabpatilfreepptmba.com
48. Figure 7 Average Total Cost in the Short and Long Run
Quantity of
Cars per Day
0
Average
Total
Cost
1,200
$12,000
1,000
10,000
Economies
of
scale
ATC in short
run with
small factory
ATC in short
run with
medium factory
ATC in short
run with
large factory ATC in long run
Diseconomies
of
scale
Constant
returns to
scale
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49. Summary
• The goal of firms is to maximize profit, which
equals total revenue minus total cost.
• When analyzing a firm’s behavior, it is
important to include all the opportunity costs
of production.
• Some opportunity costs are explicit while
other opportunity costs are implicit.
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50. Summary
• A firm’s costs reflect its production process.
• A typical firm’s production function gets flatter
as the quantity of input increases, displaying
the property of diminishing marginal product.
• A firm’s total costs are divided between fixed
and variable costs. Fixed costs do not change
when the firm alters the quantity of output
produced; variable costs do change as the firm
alters quantity of output produced.
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51. Summary
• Average total cost is total cost divided by the
quantity of output.
• Marginal cost is the amount by which total
cost would rise if output were increased by
one unit.
• The marginal cost always rises with the
quantity of output.
• Average cost first falls as output increases and
then rises.
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52. Summary
• The average-total-cost curve is U-shaped.
• The marginal-cost curve always crosses the
average-total-cost curve at the minimum of
ATC.
• A firm’s costs often depend on the time
horizon being considered.
• In particular, many costs are fixed in the short
run but variable in the long run.
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