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the traditional theory explains cost curve u shape, but in modern theory says that cost curve L shape
Wiki User
∙ 13y ago
Wiki User
∙ 11y agothe cost where there is the concept of reserve capacity is called the modern theory of costs
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What is the definition of classical theory of production?
The definition of the classical theory of production is defined by Adam Smith and involves 3 factors of production; land, labor, and capital. With the passage of time the size of the market will increase, which will lead to both internal and external economies of scale, which will eventually lower down the cost of production.
Difference between absolute cost advantage theory and comparative cost advantage theory?
absolute cost advantage talks about the efficiency and cheaply a country incure in the production of goods and services against other country whiles comparative advantage talks about the opotunity cost of goods
What does the theory of production deal with?
The theory of production deals with the relationship between the factors of production and the output of goods and services
What was Dr. Taiichi Ohno's theory of lean production?
Ohno devised a plan for cost-effective production, wherein if the assembly process could be perfectly timed, there would be no need to worry about accumulating expensive inventories.
What is one country of comparative advantage in the production of a certain good?
It has a lower opportunity cost for production of that good.
What is modern theory of cost?
Modern theory of cost is that the Economist belief that the average cost curve and marginal cost curve (AC & MC) are "L" shaped.
What is the definition of classical theory of production?
The definition of the classical theory of production is defined by Adam Smith and involves 3 factors of production; land, labor, and capital. With the passage of time the size of the market will increase, which will lead to both internal and external economies of scale, which will eventually lower down the cost of production.
What was the Production Budget for Conspiracy Theory?
The Production Budget for Conspiracy Theory was $80,000,000.
Difference between absolute cost advantage theory and comparative cost advantage theory?
absolute cost advantage talks about the efficiency and cheaply a country incure in the production of goods and services against other country whiles comparative advantage talks about the opotunity cost of goods
What does the theory of production deal with?
The theory of production deals with the relationship between the factors of production and the output of goods and services
Why variable cost is that it ignore the increasing importance of fixed cost in modern manufacturing?
variable cost ignore the increasing importance of fixed cost in order to determine thecost of production.on computing the cost of production we basing on variable cost because variable cost change as productivity change that we eliminate the fixed cost to determine cost of production.
What is the most modern theory of light?
The most modern theory of light is the quantum theory.
Differences between modern and traditional theory of cost?
Modern theory of cost emphasizes concepts like economies of scale, cost minimization, and cost efficiency through technological innovation. Traditional theory of cost focuses more on fixed costs, variable costs, and total costs without much consideration for factors like economies of scale or technological advancements. Modern theory also considers long-run costs and the impact of competition on costs, while traditional theory is more focused on short-run cost analysis.
Production cost formula?
cost of production formula
What has the author Daryl Carlson written?
Daryl Carlson has written: 'Calculating frontier multi-product, multi-factor production and cost relationships' -- subject(s): Production functions (Economic theory)
What was the Production Budget for Modern Times?
The Production Budget for Modern Times was $1,500,000.
What was the Production Budget for Modern Problems?
The Production Budget for Modern Problems was $8,000,000.
