Determinants of short run cost, Microeconomics

Assignment Help:

Determinants of Short Run Cost

- The relationship among the production function and cost can be exemplified by either increasing returns and cost or decreasing returns and cost.

- Increasing returns and cost

  • With the increasing returns, the output is increasing relative to input and variable cost and total cost will fall relative to the output.

- Decreasing returns and cost

  • With the decreasing returns, the output is decreasing relative to input and variable cost and total cost will increase relative to output.

For Example: Assume that the wage rate (w) is fixed relative to number of workers hired.

Then: 1107_determinants of short run cost.png

345_determinants of short run cost1.png

In conclusion:1096_determinants of short run cost2.png


Related Discussions:- Determinants of short run cost

Costs of education, Costs of Education The resources employed to produ...

Costs of Education The resources employed to produce a good or service measured in monetary terms is known as the ‘cost of the product’. If the measurement is per unit of serv

What is framework in the modern economics, What is framework in the Modern ...

What is framework in the Modern Economics? Framework in the Modern Economics: The framework is a framework which uses to deal along with daily activities and is utilized to

Firms in a competitive markets, illustrate a long-run equilbrium using diag...

illustrate a long-run equilbrium using diagrams for the gold market and for a representative gold mine

The basics, the basics in micro economics

the basics in micro economics

Types of unemployment, Question 1: a) Describe the different types of u...

Question 1: a) Describe the different types of unemployment that exist. b) Critically examine how monetary policy will be used to deal with inflation. c) Critically deter

Explain capital intensive goods and primary products, What is main differen...

What is main difference between capital intensive goods and primary products?  Primary product means the major product in which the firm is dealing. Capital intensive good mea

Assignment help, I need to find recent disney cruise stories and what micro...

I need to find recent disney cruise stories and what microeconomic theory it is and what they should do. for example renovating a ship why did they and what theory would that be?

Determine the amount of composite commodities, a)  Joan's utility function ...

a)  Joan's utility function can roughly be estimated as : U = 60Q 1 3/4 Q 2 2/3 She chooses from two composite commodities Q 1 and Q 2 whose prices per unit are kshs 20

Role of government in a market based economy, 1) What are the most importan...

1) What are the most important challenges that economists try to address? (2) What is the role of government in a market based economy?  (3) Who are the main economic players

Explain about neoliberalism, Q. Explain about Neoliberalism? Neoliberal...

Q. Explain about Neoliberalism? Neoliberalism: A modern, harsher incarnation of capitalism that became dominant globally beginning in early 1980s, largely as a reaction to inte

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd