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There is no fixed answer because all costs are subject to change in the long-run.
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∙ 2011-12-10 21:26:44
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Do fixed and variable costs affect short-run marginal cost?
Fixed costs do not affect short-run marginal cost because they are just that- fixed. They are not dependent on quantity when it changes and does not vary directly with the level of output. Variable costs, however, do affect short-run marginal costs.
Is an Attorney's retainer a fixed or variable cost?
It is fixed in the short run, and variable in the long run
In the short run the Sure-Screen T-Shirt Company is producing 500 units of output Its average variable costs are 2.00 and its average fixed costs are 50 The firm's total costs?
1,250
Is short run The period in which at least one input is fixed in quantity?
No, it's long run
When is the minimum possible short-run average costs are equal to long-run average cost?
the long run curve is at a minimum point
What is the difference between short-run costs and long-run costs?
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
Do fixed and variable costs affect short-run marginal cost?
Fixed costs do not affect short-run marginal cost because they are just that- fixed. They are not dependent on quantity when it changes and does not vary directly with the level of output. Variable costs, however, do affect short-run marginal costs.
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.
Why it is sometimes difficult to separate costs into variable costs and fixed costs?
Some costs are semi-variable, e.g. electricity, maintenance, and rise with output but not inproportion. Labour may be fixed in the short run.
Why it is sometimes difficult to separate costs into variable and fixed costs?
Some costs are semi-variable, e.g. electricity, maintenance, and rise with output but not inproportion. Labour may be fixed in the short run.
If a firm decides to produce no output in the short run its costs will be?
its fixed cost
Is an Attorney's retainer a fixed or variable cost?
It is fixed in the short run, and variable in the long run
What does fixed costs means?
what does fixed costs mean
Why are Fixed costs also called capacity costs?
Fixed costs are considered capacity costs because if a company expands, fixed costs will change. Additionally, if a company adds more resources, fixed costs will change.
Definition of step costs?
step cost : its a cost that is fixed cost during the short run within the relevant range , and it will become variable cost over the long run as supervisory salary .
Variable costs are relevant and fixed costs are irrelevant?
Generally variable costs are relevant costs but if due to any decision fixed costs are also going to affected then fixed costs are also relevant costs.
Is fixed costs is a period costs?
Yes normally fixed costs are period costs because these costs have to be paid no matter production done or not.
