Because in long run, all cost is variable (as i rmb)!?
To find the Average Variable Cost functions you need the following: ATC, TFC and TC.
add up the short run variable data (TC) and divide by quantity of that column (Q).
First, your question needs to be rephrased. In a perfectly competitive market where firms with the same product sell at the same price, Marginal Revenue (increase in revenue by producing another product) equals the price the product is sold. This marginal revenue (MR) needs to be greater than or equal to the variable cost (VC) in the short run, because if their MR < VC that means they are losing money for every unit they are producing. So in the short run it is better to not produce anything so you don't lose money (they would still lose money due to fixed costs, FC). In the long run MR needs to be greater than or equal to total cost (TC = VC + FC). If not, you lose money and it is best to stop producing and leave the market altogether so you do have VC or FC. To maximize profits MR must equal MC, marginal cost, or how much it costs to produce another unit. If MR > MC, the firm can produce more because they would gain more revenue than it would cost. If MR < MC, the firm should produce less because it is costing them more to produce then they are receiving revenue. Hope that answers both sides of your question.
The simple, or basic, economic order quantity (EOQ) is a special case of the continuous rate EOQ, which can be derived from the equation of total cost as follows. Here is the equation for total cost (TC) as a function of run size (q): TC(q) = K*D/q + P*D + q*H(r - D)/(2r), where: K = Fixed cost per order D = Annual Demand of product q = run size P = Purchasing cost per unit H = Annual holding cost per unit r = Production rate K*D/q = Setup cost P*D = Purchasing cost H(r - D)/(2r) = holding cost. To find the maximum value of q, you take the derivative, d[TC(q)]/dq, set it equal to zero, and solve for q. First, take the derivative: d[TC(q)]/dq = -K*D/q2 + H(r - D)/(2r). Then, to maximize, set this equal to zero, and solve for q: H(r - D)/(2r) - K*D/q2 = 0, q2 = (2*r*K*D)/[H(r - D)], q = √((2*r*K*D)/[H(r - D)]). That's the formula for the continuous rate EOQ. Basic EOQ is the special case of r >> D, which means r - D pretty much equals r, which allows you to cancel the r's in the above equation, giving you the formula: q = √((2*K*D)/H). This is the formula for basic EOQ.
how can you calculate average costYou add up all the numbers that you're averaging and then divide that number by the amount of numbers you're averaging.Here's an example.....100, 99, 67, 81add them all up...347now divide that number by four because there are four numbers (110, 99, 67, 81)the average of the numbers is... 86.75
To find the Average Variable Cost functions you need the following: ATC, TFC and TC.
add up the short run variable data (TC) and divide by quantity of that column (Q).
The 2005 Scion tC is 14 ft. 6 in. (174 in.) long.
The 2013 Scion tC is 14 ft. 6 in. (174 in.) long.
The 2009 Scion tC is 14 ft. 6 in. (174 in.) long.
The 2010 Scion tC is 14 ft. 6 in. (174 in.) long.
The 2014 Scion tC is 14 ft. 8.6 in. (176.6 in.) long.
The 2006 Scion tC is 14 ft. 6 in. (174 in.) long.
The 2007 Scion tC is 14 ft. 6 in. (174 in.) long.
The 2011 Scion tC is 14 ft. 6 in. (174 in.) long.
The 2008 Scion tC is 14 ft. 6 in. (174 in.) long.
The 2012 Scion tC is 14 ft. 6 in. (174 in.) long.