cost output relationship
THE SHORT-RUN COST-OUTPUT RELATIONSHIP REFERS TO A PARTICULAR SCALE OF OPERATION OR TO A FIXED PLANT. IT INDICATES VARIATIONS IN COST OVER OUTPUT FOR THE PLANT OF A GIVEN CAPACITY AND THEIR RELATIONSHIP WILL VARY WITH PLANTS OF VARYING CAPACITY.
what is the relationship between long run average cost curve and short run average cost curve?
its fixed cost
The type of relationship that you postulate between short-run and long-run average cost curves that is not U shaped is the external limiting relationship.
Prices rise, output rises
THE SHORT-RUN COST-OUTPUT RELATIONSHIP REFERS TO A PARTICULAR SCALE OF OPERATION OR TO A FIXED PLANT. IT INDICATES VARIATIONS IN COST OVER OUTPUT FOR THE PLANT OF A GIVEN CAPACITY AND THEIR RELATIONSHIP WILL VARY WITH PLANTS OF VARYING CAPACITY.
what is the relationship between long run average cost curve and short run average cost curve?
its fixed cost
The type of relationship that you postulate between short-run and long-run average cost curves that is not U shaped is the external limiting relationship.
Diminishing return of scale is a short run concept. It explains the relationship between the rate of output with increaring inputs of production. Economies of scale, on the other hand, explains the relationship between the LR average cost of producing a unit of good with increasing level of output. Diminishing return of scale is a short run concept. It explains the relationship between the rate of output with increaring inputs of production. Economies of scale, on the other hand, explains the relationship between the LR average cost of producing a unit of good with increasing level of output.
what kind of relationship would you postulate between short run and long run average cost curves when these are not u shaped as suggested by the modern theories.
Prices rise, output rises
what kind of relationship would you postulate between short run and long run average cost curves when these are not u shaped as suggested by the modern theories.
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.
A. Total fixed cost and output:TFC refers to total money expenses incurred on fixed inputs like plant, machinery, tools & equipments in the short run. Total fixed cost corresponds to the fixed inputs in the short run production function. TFC remains the same at all levels of output in the short run. It is the same when output is nil. It indicates that whatever may be the quantity of output, whether 1 to 6 units, TFC remains constant. The TFC curve is horizontal and parallel to OX-axis, showing that it is constant regardless of output per unit of time. TFC starts from a point on Y-axis indicating that the total fixed cost will be incurred even if the output is zero. In our example, Rs 360=00 is TFC. It is obtained by summing up the product or quantities of the fixed factors multiplied by their respective unit price.
The answer is 25.
what is short-run cost function