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It will depend on the type of output. In manufacturing, the cost of raw materials will go up as more items are produced. That is a linear change. The cost of overhead (Labor, utilities, etc.) will also go up, but tends to be at a lessor rate, increasing profit margin.
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What are example of variable expenses?
Variable costs are costs that increase in total as output increases. For example, total labor costs increase per each hour worked; total direct materials costs increase per unit produced, etc.
As output increases total variable costs?
If the output increases, so will the variable cost. Though, variable cost is not directly proportionate to the output, still it will witness an incline.
What happen as the volume of output decreases?
Fixed costs per unit will increase.
Will total variable costs increase if the level of activity increases within the relevant range?
yes
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.
Do the fixed costs increase as output increases?
No these are costs such as rent stay basically same irrespective of output
If average cost increases does marginal cost increase?
It depends if the increase in Average Cost is caused by an increase in Fixed Costs or an increase in Variable Costs. An increase in Fixed Costs will not increase MC, because FCs do not vary with output (by definition) And increase in Variable Costs will increase MC
What are example of expenses?
Variable costs are costs that increase in total as output increases. For example, total labor costs increase per each hour worked; total direct materials costs increase per unit produced, etc.
What are example of variable expenses?
Variable costs are costs that increase in total as output increases. For example, total labor costs increase per each hour worked; total direct materials costs increase per unit produced, etc.
When marginal costs are below average cost at a given output one can deduce that if output increases what happens?
when marginal costs are below average cost at a given output, one candeduce that, if output increases dose average costs fall or marginal costs will fall
As output increases the average fixed costs?
remain constant
As output increases total variable costs?
If the output increases, so will the variable cost. Though, variable cost is not directly proportionate to the output, still it will witness an incline.
Would glucose in urine increase output or decrease it?
increases
What is the behavior of total variable cost as output increases?
tvc will also inscrease as output increase
What increase if you use more cells?
the power output increases
According to aggregate supply curve what happens as the price level increases?
firms have more of an incentive to increase output
For the average total cost curve of a firm without economies of scale what happen to costs as output increases?
costs go down
