Cost considerations for managers, Microeconomics

Some Cost Considerations for Managers

* Three guidelines for estimating the marginal cost(MC):
1) Average variable cost should not be used as substitute for the marginal cost(MC).

2) A single item on firm's accounting ledger can have two components, only one of which involves marginal cost(MC).

3) All opportunity cost should be included in determining the marginal cost(MC). 

Posted Date: 10/12/2012 5:26:08 AM | Location : United States

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