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What is initial cost?

Updated: 8/22/2023
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10y ago

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An initial investment is the amount of money a company, business, franchise, partnership, or sole proprietorship starts out with to expand their company or business in the beginning.

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11y ago
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initial cost

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Continue Learning about Economics

Why does the average cost curve fall at the initial stage then rise again?

The average cost curve fall at the initial stage due to increasing returns on variable factors of production. It then rises due to diminishing returns, which causes costs Êto rise.


Technology that is characterized by high initial cost and low operating costs is termed?

capital-intensive.


Why marginal cost go decrease in initial phase under perfect competition?

Since, in a perfectly competitive market, prices are fought down to Price = Marginal Cost, the only way to make a strict economic profit is to lower marginal cost.


Is it smart to invest in gold at this time?

Yes gold is a great investment right now. The problem is that since gold is selling at such a high price right now your initial cost is much greater than usual.


What are the steps of cost-benefit analysis?

Cost-benefit Analysis is simply calculating the cost of something versus the benefit to see if the purchase or project is worthwhile. It is an example of unadulterated economics. For example, let's say you want to purchase a new piece of equipment for your business. You would calculate the initial cost of the purchase and then calculate how long it would take before the equipment paid for itself and you began making money off the purchase. Which is greater, the cost or the benefit, which determines whether or not the initial purchase is worthwhile. Which is greater, your assets or the deficits of what you or your business is contemplating. Which is greater, the benefit or the cost?

Related questions

What is the initial cost of geothermal heating for residential?

The initial cost would be buying the land that has geothermal capabilities as most land does not, so hundreds of thousands.


Difference between histotical cost and standard cost?

Standard cost is the cost which is basis to measure the actual cost historical cost is the initial cost


Is BMW a good first car?

NO, Due to the high initial cost and high maintenance cost.


Calculate rate of return?

NPV/Initial Cost of Investment


Who pays for divine design makeovers?

you have to pay the initial cost!


What is the difference between the initial price of 55000 and the final cost of 29999?

25001


Rechargeable vapes cons?

Requires regular maintenance, higher initial cost.


What are prices on personalized license plates?

To buy or renew your license plate the cost depends on the initial cost of your vehicle. Although the cost for a personalized plate is an added cost of fifteen dollars.


What is the disadvantages of magnetic levitation?

high initial cost, it disturbs the local trains system,


WHAT ARE THE COST OF MARKET ORIENTATION?

setting marketing focus structure initial product development


What is the definition of cost based price?

In retail, an established percentage is added to the absolute cost (initial cost, plus handling costs) of of an item to arrive at the selling price.


Why does the average cost curve fall at the initial stage then rise again?

The average cost curve fall at the initial stage due to increasing returns on variable factors of production. It then rises due to diminishing returns, which causes costs Êto rise.