Fixed costs - short run cost function, Managerial Economics

Assignment Help:

Fixed costs are those that are independent of output. They should be paid even if firm produces no output. They wouldn't change even if output changes. They remain fixed whether output is small orlarge. Fixed costs are also known as 'overhead costs', 'sunk costs' or 'supplementary costs'. They include payments likeinterest, rent, depreciation charges, insurance, maintenance costs, administrative expenselike manager's salary, property taxes and so on. In the short period, total amount of these fixed costs won't decrease or increase when the volume of firms output falls orrises.


Related Discussions:- Fixed costs - short run cost function

Cost, classification of costs

classification of costs

Average revenue (ar), Average Revenue (AR) This is the revenue per uni...

Average Revenue (AR) This is the revenue per unit of the commodity sold.  It is obtained by dividing Total Revenue by total quantity sold.  For a firm in a perfectly competiti

Business cycle, BUSINESS CYCLES Meaning: The business cycle is ...

BUSINESS CYCLES Meaning: The business cycle is the tendency for output and employment to fluctuate around their long-term trends.  The figure below presents a stylised

Problems of prices and incomes policy, Problems of prices and Incomes polic...

Problems of prices and Incomes policy i. Confrontation The imposition of the prices and incomes policy, voluntary or statutory, risks the possibility of confrontation w

The central bank, The Central Bank These are usually owned and operate...

The Central Bank These are usually owned and operated by governments and their functions are: i.      Government's banker :  Government's need to hold their funds in an ac

Pilgrim Bank Case, Your discussion assignment this week is associated with ...

Your discussion assignment this week is associated with the Pilgrim Bank case. Using the attached file, answer the following questions: A. Is there a difference in profitability ac

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