--%>
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 : Hiring more labor in profit maximization

    When a firm hires an additional worker who adds $100 worth of output daily, and adds $50 daily to the firm’s costs, in that case the firm must: (w) hire more labor. (x) hire less labor. (y) not change its employment of labor. (z) sell off some o

    		•
  • Q : States the determinants of elasticity

    States the determinants of elasticity?

    		•
  • Q : Substitution and Demands for Resources

    When the relative price of a resource decreases, we would usually expect a firm to employ less units of: (w) that resource due to the substitution effect. (x) that resource because of the output effect. (y) complementary resources due to the substitut

    		•
  • Q : Screening and Credentialism Critics of

    Critics of “credentialism” believe which firms making employment decisions tend to rely much heavily on: (1) personal contacts. (2) past experience. (3) personality testing. (4) job interviews. (5) formal training and education.

  • Q : Qualifications of a potential in

    Screening refers to: (w) employers examining the qualifications of a potential employee before hiring. (x) applicants acquiring additional schooling in order to attain a certain job. (y) employers hiring only people of a certain race or sex. (z) applicants learning as

    		•
  • Q : Explain the infinitely elastic demand

    Explain the infinitely elastic demand.

    		•
  • Q : What are the important areas of

    What are the important areas of decision-making?

    		•
  • Q : Difference between average cost and

    What are the difference between average cost and total fixed cost?

    		•
  • Q : Illustrates the real concept briefly

    Illustrates the real concept briefly?

    		•
  • Q : Signaling and Screening Completing your

    Completing your degree is probably to be a significant signal which will help you secure a well-paid job along with a bright future if potential employer: (1) want to ensure that job applicants have already obtained important amounts of specific human capital. (2) use

    		•