--%>
Assignment Help - homework help

Illustrates the term variable cost

Illustrates the term variable cost?

E

Expert

Verified

Variable cost:

These costs are those costs that change along with the quantity of production. While the output rises, variable cost also raises. While the output decreases, the variable cost also reduces. Therefore, there is a direct relationship in between volume of production and variable cost. Variable costs are also termed as direct costs or prime costs. Illustrations are materials, power, wages and stores. Prime or variable cost comprises direct material cost, direct labor cost and another direct expense.

   Related Questions in Managerial Economics

  • Q : Depletion of fossil fuel Resources I

    I have a problem in economics on Resources. Please help me in the following question. The depletion of the fossil fuel reserves will cause the world’s production possibilities frontier to shift: (i) Outward and decrease capacity

    		•
  • Q : Backward Bending Labor Supplies The

    The graph for the supply of labor might be backward bending since: (w) the substitution effect surpasses the income effect at specific wages. (x) overtime workers receive pay for time and a half. (y) the substitution effect. (z) the income effect is m

    		•
  • Q : What are the certain assumptions in

    What are the certain assumptions in production functions?

    		•
  • Q : Income effect of increase wage When the

    When the income effect of a wage raise is more powerful than the substitution effect, in that case the:  (i) labor supply curve will be “backward bending.” (ii) unemployment rate will rise since more people will be av

    		•
  • Q : Hiring additional workers exceeds the

    One purpose that firms hire labor at the point where w is equal to P x MPPL is: (1) if w < P x MPPL, the cost (w) of hiring additional workers exceeds the gains (P x MPPL) of hiring them, therefore they would hire fewer workers. (2) when w > P x

    		•
  • Q : Characteristics of a good policy what

    what is that policy that talks about not changing the policy frequently?

    		•
  • Q : Spencer and Sieglemans definition of

    What is Spencer and Siegleman’s definition of Managerial economics?

    		•
  • Q : Illustrate Screening by Asymmetric

    Insistence by a potential employer which job applicants submit a résumé is an illustration of: (1) networking. (2) screening. (3) signaling. (4) bragging. (5) qualifying. Please choose the right answer from above...I

    		•
  • Q : Describe the term trend projection

    Describe the term trend projection.

    		•
  • Q : Explain about the term survey techniques

    Explain about the term survey techniques.

    		•