Total variable cost has a direct relationship with the level of output or units produced so it changes according to the change in the production units or level of production.
For example:
Variable cost per unit = 10
so if units produced = 10
then variable cost = 10 * 10 = 100
if units produced = 8
variable cost = 10 * 8 = 80
tvc will also inscrease as output increase
False, it is the fixed cost which is not increased or decreased with proportion to output.
I'm a freshman at Utah State diving into macroeconomics. One of the key points from my text states: "Knowledge increases productivity, do specialization increases total output." Can someone help me understand this? What is the total output, our goods, our economy? Or can someone give me am example to relate it to?
average fixed will go down, average variable will remain the same, and average total will go down.
What is the total variable cost when output is 100 units in Figure 6.2
tvc will also inscrease as output increase
If the output increases, so will the variable cost. Though, variable cost is not directly proportionate to the output, still it will witness an incline.
Variable costs are costs that increase in total as output increases. For example, total labor costs increase per each hour worked; total direct materials costs increase per unit produced, etc.
Variable costs are costs that increase in total as output increases. For example, total labor costs increase per each hour worked; total direct materials costs increase per unit produced, etc.
False, it is the fixed cost which is not increased or decreased with proportion to output.
yes
I'm a freshman at Utah State diving into macroeconomics. One of the key points from my text states: "Knowledge increases productivity, do specialization increases total output." Can someone help me understand this? What is the total output, our goods, our economy? Or can someone give me am example to relate it to?
average fixed will go down, average variable will remain the same, and average total will go down.
What is the total variable cost when output is 100 units in Figure 6.2
The law of variable proportion states that as one input is increased while keeping other inputs constant, the output will eventually decrease. This can lead to changes in the cost curve by affecting the cost of production as more or less of a variable input is used, impacting both marginal and average cost.
Under Law of variable proportion: only one variable input varies all other variable kept constant. Under Law of Return to Scale: All the variable inputs varies except the enterprise. Law of variable proportion is for short period; law of return to scale is for long period. Law of variable proportion shows the relationship if one variable input increase (eg: Labour) by keeping all other variable constant; total product and marginal product increase upto a certain point after that it will increase at a diminishing rate. it shows in three stage first increase then constant and then decrease. Law of return to scale shows the relationship between inputs and output at three different stages: 1. output increase more than inputs, 2. output and input are constant, 3. output is less than proportionate input.
an increase in temperature or radius causes an increase in luminosity, assuming the other variable doesn't change. luminosity is the total energy output, rather than a measure of energy output against size.