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The abbreviation for total product, which is the total quantity of output produced by a firm for a given quantity of inputs.
The market value of a firm's equity increases, the cost of capital decreases.
In economics and finance, marginal cost is the change in total cost that arises when the quantity produced changes by one unit.
The scale effect indicates what happens to the demand for the firm's inputs as the firm expands production. As long as capital and labor are "normal inputs," the scale effect increases both the firm's employment and capital stock.
costs go down
The abbreviation for total product, which is the total quantity of output produced by a firm for a given quantity of inputs.
The market value of a firm's equity increases, the cost of capital decreases.
In economics and finance, marginal cost is the change in total cost that arises when the quantity produced changes by one unit.
In economics and finance, marginal cost is the change in total cost that arises when the quantity produced changes by one unit.
The scale effect indicates what happens to the demand for the firm's inputs as the firm expands production. As long as capital and labor are "normal inputs," the scale effect increases both the firm's employment and capital stock.
costs go down
costs go down
No
a firm has excess capacity if it produces below its efficient scale, whcih is the quantity at which total cost is a minimum.
Leasing is a substitute for debt financing, so leasing increases a firm's financial leverage.
1- quantity of units produced = quantity of unit sold , so there is no change in invetory . 2- prices will remain fixed. 3- variable cost rate will remain fixed 4- total fixed costs will remain fixed up to maximum manufacuring capacity of the firm
When a firm closes down its business, it implies less competition in the field and hence, lesser need to cut prices and stay afloat. Therefore, though a firm shuts down, the overall profitability increases. It has been said that competition is waste, monopoly is efficient.