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For a given configuration of plant and equipment, short-run costs vary as output varies. The firm can incur long-run costs to change that configuration. This pair of terms is the economist's analogy of the accounting pair, above, variable and fixed costs
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∙ 2010-12-02 07:14:00
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In accounting profit is the difference between what?
difference between revenue and costs
The positive difference between revenue and costs?
Profitability
What is difference between product cost period cost and expenses?
What is the difference between product and period costs
In a perfectly competitive market do firms exhibit productive efficiency?
in the short-run they are not able to but in the longrun it can be attainerd as businesses want to lower their average costs!
What is the difference between start up costs and variable costs?
shut up u neek
What is the difference between operating costs and revenue expenditure?
They are synonyms.
For a firm to operate in the shortrun the total revenue must at least be equal to Why?
A firm would still operate if revenues are below total coots, but not if revenues are below variable costs. The reason is that as long as revenues are above variable costs, the firm will earn a difference to contribute to the fixed costs (fixed costs are costs that a company has to pay in the short-run whether it operates or not). If the firm stops operating in the short-run, it will have to pay for the full fixed costs (e.g., rent, some fixed labour) If revenues are below variable costs, for every unit of production, the company loses the difference and does not contribute to the fixed costs. It is more economical to shutdown in the short-run.
What is the difference between actual costs and budgeted costs?
Actual Costs are costs which have occurred and can be reliably measured. Budgeted Costs are costs which have been estimated, possibly by using Forecasted Costs.
What is the cost difference between divorce and separation?
Divorce costs the man everything he has. Separation costs more.
Are Fixed costs are the difference between total costs and average variable costs?
No. But: ATC = AVC + AFC Or TC = VC + FC
What is the difference between fancy and regular ketchup?
There is really no difference .Except that the other on costs more
What is the difference between average total costs and average variable costs?
Average total cost is the average of all your costs. This is your Fixed Costs and your Variable costs. Average Variable Cost is the average of your costs that can fluctuate.
