Define elasticity - marginal cost, Cost Accounting

1) Define Elasticity.  If you have a product where elasticity is less than one, what does that mean?  Is it good, bad for the firm?

2) Why will firms not shut down as soon as the price of their product drops below the Marginal cost?  At what point will most firms go out of business (shut-down) and why?

Posted Date: 3/28/2013 3:10:21 AM | Location : United States







Related Discussions:- Define elasticity - marginal cost, Assignment Help, Ask Question on Define elasticity - marginal cost, Get Answer, Expert's Help, Define elasticity - marginal cost Discussions

Write discussion on Define elasticity - marginal cost
Your posts are moderated
Related Questions
Cost Book-Keeping In cost account accounts, extensive employ is made of control accounts that are based in the similar principles as those utilized in financial accounts.  Two


Daisy Ltd has a net profit after tax of $3 400 000 for the year ending 30 June 2012.  For the entire financial year Daisy Ltd had two million $1.00 cumulative preference shares on

Purpose of Cost Accounting Information Cost accounting is employed for a number of reasons, some of that are briefly described in the given points as: a) Accounting for co

What is labor costing,what are the problems involved in labor costing

Fixed Budgeting The master budget discussed before is a fixed budget. A fixed budget is defined via as: 1. Just one level of activity 2. Not adjusted to re

fixed expenses are incurred equally in the two half year periods,calculate

Engineering Method of Cost Estimation This method is based on a detailed study of each operation whereas careful requirement is made for materials, labour and equipment essent

High - Low Method of Cost Estimation Now, cost estimation is based upon the relationship between past level and past cost of activity. Variable cost is based on the relationsh

Vintage Auto Company manufactures parts to order for antique cars. Vintage Auto makes everything from fenders to engine blocks. Each customer order is treated as a job. Vintage Aut