Short- Run Costs
Short-run price function relates to the short-run production time period. The factors of production employed in the short-run are predetermined factors and variable factors. As price refers to the prices paid for using the factor input, thus the short-run cost comprises of only predetermined costs and variable costs.
a) Fixed Costs
Definition - It is also called as "overhead costs" or unavoidable contractual costs.
- It does not differ with the output.
- such as rent, insurance premium and the interest in loan.
b) Variable Costs
Definition - It is also known as "direct costs" or avoidable contractual costs.
- It gets affected directly with output.
Such as wages of labour, price of the raw materials and electricity prices.
Total and Unit Costs Measurement are given below
a) Total Fixed Cost (TFC)
b) Total Variable Cost (TVC)
c) Total Cost (TC) = TFC + TVC
d) Average Fixed Cost (AFC) or fixed cost per unit of output.
e) Average Variable Cost (AVC) or variable cost per unit of output.
f) Average Total Cost (ATC or AC) or the cost per unit of output.
g) Marginal Cost (MC) or the additional cost incurred in producing one additional unit of output.
Short-run Cost Schedule
Units of Output
( b + c )
b
a
c
( e + f )
d
e
f
g
H
0
1
2
3
4
5
6
7
8
9
10
60
100
125
140
150
170
200
240
290
350
160
225
250
270
300
340
390
450
50
41.67
35
30
28.33
28.57
32.22
µ
33.33
25
20
16.67
14.28
12.5
11.11
75
45
42.85
42.50
43.33
40
15
Shapes of TC, TFC and TVC Curves
Shapes of Unit Cost Curves
Email based production cost homework help - production cost assignment help at TutorsGlobe
Are you searching economics tutor for help with Production Cost questions? Production Cost topic is not easier to learn without external help? We at www.tutorsglobe.com offer finest service of economics homework help and economics homework help. Live tutors are available for 24x7 hours helping students in their Production Cost related problems. We provide step by step Production Cost question's answers with 100% plagiarism free content. We prepare quality content and notes for Production Cost topic under economics theory and study material. These are avail for subscribed users and they can get advantages anytime.
Why TutorsGlobe for Production Cost homework help
tutorsglobe.com sources of energy assignment help-homework help by online natural resources tutors
tutorsglobe.com clinical manifestations assignment help-homework help by online cryptococcus neoformans tutors
tutorsglobe.com general characteristics assignment help-homework help by online spermatophytes tutors
tutorsglobe.com aggregate demand assignment help-homework help by online simple theory of income determination tutors
tutorsglobe.com solar energy assignment help-homework help by online energy crisis tutors
Chemistry of Carbohydrates-Lipids-Nucleic Acid tutorial all along with the key concepts of Carbohydrates, Functions of Carbohydrates, Lipids, Nucleic Acids, Building Blocks of Nucleic Acids and Functions of Nucleic Acids
tutorsglobe.com short run equilibrium price assignment help-homework help by online short-run equilibrium positions tutors
tutorsglobe.com important products derived from cholesterol assignment help-homework help by online cholesterol biosynthesis tutors
Physiochemical Analysis tutorial all along with the key concepts of Electromagnetic spectrum, Absorption of Radiation, Limitations of Beers law, Principle of instrumentation
Theory and lecture notes of Distributed transaction management all along with the key concepts of distributed transaction management, transaction management. Tutorsglobe offers homework help, assignment help and tutor’s assistance on Distributed transaction management.
Theory and lecture notes of Arrows Impossibility Theorem all along with the key concepts of arrows impossibility theorem, economics of welfare, social welfare functions. Tutorsglobe offers homework help, assignment help and tutor’s assistance on Arrows Impossibility Theorem.
Theory and lecture notes of Counting Techniques all along with the key concepts of Counting techniques, Basic Definitions, Factorial, Permutation, homework help, Combination and Tree Diagram. Tutorsglobe offers homework help, assignment help and tutor’s assistance on Counting Techniques.
tutorsglobe.com energy and enzymes assignment help-homework help by online general microbiology tutors
Power Supplies tutorial all along with the key concepts of Alternating current power supply, Basic direct current power supply, Linear power supply, Switching power supply, Alternating Current input, Direct Current voltage
Theory and lecture notes of Steady-State Capital-Output Ratio all along with the key concepts of steady-state capital-output ratio, Determinants of Balanced-Growth Path, homework help, assignment help. Tutorsglobe offers homework help, assignment help and tutor’s assistance on Steady-State Capital-Output Ratio.
1935313
Questions Asked
3689
Tutors
1469324
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!