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Do transportation costs increase or decrease the cost of the merchandise?
Wiki User
∙ 13y ago
Increase. Product cost is a reflection of the cost to manufacture and ship the product, as well as middleman markups.
Wiki User
∙ 13y ago
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A decrease in input costs to firms in a market will result in?
a decrease in equilibrium price and an increase in equilibrium quantity
What oil tycoon used horizontal integration to decrease costs and increase profits?
John D. Rockefeller
Why does globalization lead to environmental damage?
Environmental-protection regulations increase compliance costs and decrease economic competitiveness.
What are the different economic and non economic costs of unemployment?
Economic costs is the decrease in goods and services that occurs as result of unemployment but non-economic cost is the increase in goods and services that occur as result of unemployment.
What would cause marginal costs to increase?
By definition marginal cost is the change in total costs for each additional item produced. Marginal costs will decrease when changes in inputs result in costs increasing at a decreasing rate. An example might be gains in productivity when hiring an additional unit of labor results in a more than proportional increase in output. Marginal costs would increase when an additional unit of an input results in a less than proportional increase in output (assuming input prices are constant).
In computing the cost of merchandise sold does freight increase or decrease the cost?
Freight costs are added to the cost of the merchandise. The total is typically referred to as the "landed" cost of the product.
A decrease in input costs to firms in a market will result in?
a decrease in equilibrium price and an increase in equilibrium quantity
Freight costs incurred by a seller on merchandise sold to customers will cause an increase in what?
selling price
Do variable costs per unit decrease when sales increase?
Variable cost per unit remains same per unit and has no impact on increase or decrease of sales.
What are the Types of Returns to scale?
Economies of scale (costs decrease), diseconomies of scale (costs increase), constant returns to scale (costs stay the same)
How can manager decrease variable costs while increaseing fixed cost?
This is generally done in areas such as manufacturing where processes can be more automated. By investing in machines and facilities, the fixed costs will increase, but variable labor costs will decrease.
What are the important differences between fixed cost and variable costs?
Fixed costs are costs that do not change in total as the number of units increase or decrease. Examples include rent and utilities expense, manager salaries, etc. However, since the total cost does not change, the individual unit cost does change as units increase or decrease. Variable costs are costs that change in total as the number of units increase or decrease. An example might be direct labor, which increases based on number of hours work. However, total unit cost does not change.
What is objectives of the firm?
Succeed 1. Increase sales 2. Decrease costs 3. Operate efficiently 4. Increase profit
What is one reason for the dramatic decreases in exports in 1807 and from 1810 to 1812?
an increase in production and transportation costs
What oil tycoon used horizontal integration to decrease costs and increase profits?
John D. Rockefeller
How do offices use ict?
Shops need to use ICT because some times to increase and decrease costs this will lower prices and increase profit
What happens to sales when fixed costs decrease?
When fixed costs decrease, what does this do for sales?
